Catchpole Brent: Credit Contracts and Consumer Finance Bill — In Committee 
Catchpole Brent: Credit Contracts and Consumer Finance Bill — In Committee 
[Volume:611;Page:8841] 
BRENT CATCHPOLE (NZ First) 
: 
 Part 6 of this bill covers the transitional provisions which is one area that I would like to touch on at this point. Although there are transitional clauses here to allow other Acts to apply until this legislation comes into effect I am concerned about clause 114(3) which states: “However subpart 3 of Part 3 does not apply to a buy-back transaction made before the commencement of this subsection.” 
I would hate to think that that particular form of transaction will be excluded until that clause comes into being. I request the Minister in the chair David Cunliffe to stand up and take a call to make it quite clear to this Committee and to everybody else that buy-back transactions that occurred prior to this bill coming into force will be captured and that there will be remedies for those people who have been trapped in such schemes by unscrupulous transactions. The Minister should take note of what I am saying and then get up and confirm to this Committee that transactions under buy-back schemes will not be excluded from this legislation. An awful lot of desperate people are already trapped in existing buy-back schemes and they are hopeful that they will have a means of remedying that so I hope that clause 114 will not exclude those people from that remedy. 
 I move on to clause 115 “Election for Act to apply”. That clause allows creditors the choice to elect for this legislation to apply to contracts that existed prior to this law coming into force. It does not allow anywhere for debtors to have that choice. I am disappointed that debtors are excluded from that option because on a number of very important issues that are addressed in this legislation a debtor would have recourse to a better deal under it rather than just the creditor having that option. I would like the Minister in the chair to comment on that. 
I move to clause 116 “Continuing application of Credit Contracts Act 1981 and Hire Purchase Act 1971”. I am pleased to see that provision there. I just hope that it does not preclude people from remedies under this legislation if the creditor has elected to continue under the old Acts. I would like the Minister to take a call and confirm to the Committee that continuation under those old Acts does not preclude actions under this legislation in circumstances where the creditor has elected to work under the old Acts and that is to the detriment of the debtor. I suggest that in such cases those three clauses disadvantage the debtor to the extent that we really need some comment from the Minister—in particular to do with buy-back schemes. If buy-back schemes are being excluded because of those three clauses I really do need to have some comment from the Minister. 
If buy-back schemes are not being excluded and debtors are able to continue under this legislation and get a remedy I will be happy with that. But I ask the Minister to please confirm to the Committee that there will be a remedy under this legislation in respect of buy-back schemes already in existence before this bill comes into effect. I ask the Minister to stand and take that call.