Catchpole Brent: Credit Contracts and Consumer Finance Bill — In Committee 
Catchpole Brent: Credit Contracts and Consumer Finance Bill — In Committee 
[Volume:611;Page:8847] 
BRENT CATCHPOLE (NZ First) 
: 
 I would like to follow up on Lindsay Tisch’s comments about the right of the debtor to cancel under schedule 1 which refer back to clause 24. He is quite right in his example of a car leaving the car yard because it certainly does lose its value. I tried to point out to him while he was speaking—and I hope he did not mind my interruption—a reference to a student party and a stereo. I tend to think that a stereo after a student party would lose a lot of its value if returned within the 3-day limit of the normal interpretation of clause 24. 
I move on to paragraph (s) in schedule 1: “Time limits for cancellation”. In general the time limit is 3 working days. However if the documentation and agreement are made by electronic means or email then that period can be extended to 5 working days after the electronic communication is sent. I have a problem with the terminology of “after the electronic communication is sent.” because there is no guarantee that the electronic communication will be received and read at the other end unless a provision is inserted to ensure that that happens. That provision can be activated with modern email systems but if it is not activated then there is no guarantee that electronic mail and emails have been received. That is a key factor. If somebody is not aware that an email is there then how can he or she possibly respond to it within the 5 working days set out in this schedule? This is quite a concern because one has the right to cancel a transaction within a certain time but that right is extended by the use of an electronic method without any confirmation of whether the electronic communication has been received. 
The schedule goes on to say that there can be an agreement within the contract or process to receive information by electronic mail. That information could concern the request for a price or some details about a particular product or contract. The provision does not necessarily set out that the agreement has to advise the debtor of the final contract which I think is something that was overlooked in the final analysis. 
I go on to the statement in paragraph (s): “Delete if the credit contract does not involve a credit sale.” I have some concerns about the interest provision of this paragraph. The interest period is from the day the property or services are received until the day either the cash price is paid for the property or services or the property is returned to the creditor. But if someone makes a credit contract and then pays that cash price within 3 days where does that situation lie? That person has the right to cancel that contract within 3 days but if he or she then decides to pay cash within 3 days will interest be charged for that 3-day period? I would like the Minister to take a call on that and give me an answer. 
I move on to schedule 3 which sets out the procedures for buy-back transactions. It is good that there is a fairly comprehensive description of what information there should be on a contract but there is one thing missing—