If things go wrong
Contact the retailer but don’t stop your payments. If you do, you are breaking your contract and may be charged penalty interest. The retailer must address the problem with a repair, replacement or refund. In the meantime you must keep paying.
If you want to cancel the agreement
You can cancel within five working days, but you will have to pay the full price up front.
Credit contracts: Plain English definitions
If you damage, lose or sell the products
If you damage, lose or sell products before you have paid them off, you still have to make your payments.
If you fall behind on payments, the finance company may have the right to repossess the product(s) you bought on credit. They can only take products identified in the agreement, eg the TV bought on hire purchase.
If you can't keep up to date with payments
If you struggle to pay on time, it's best your lender knows as soon as possible. A budget adviser or free financial mentor can talk to the lender on your behalf. They can also help create a realistic budget and repayment plan, based on your income and living costs.
Free confidential advice(external link) — MoneyTalks
Find more on dealing with debt:
Get support at any point from:
- MoneyTalks — this helpline gives free budgeting advice to individuals, family and whānau. Financial mentors can help you understand your financial situation, organise your debt and plan for the future. They can also put you in touch with a local budgeting service and help you address issues you're having with lenders. Contact them on 0800 345 123. Or by live chat, email or text, if you prefer.
- Citizens Advice Bureau (CAB) — this is a free, independent service, run by volunteers. CAB can advise you on your consumer rights and obligations, in person, by phone, or online.
Contact information(external link) — MoneyTalks
A CAB near you(external link) — Citizens Advice Bureau