Get your credit costs and legal rights in writing
Key information about a consumer credit contract must be given to you in a written disclosure statement before you enter into a consumer credit contract. It helps you to understand the credit costs and explains your legal rights, such as your right to cancel to the contract.
Continuing disclosure is also required at six-monthly intervals or more frequently if it is a revolving credit contract such as a credit card, or when you ask for information about fees, balance owing and so on.
A revolving credit contract is a credit contract:
- under which you can make more than one request for credit under the contract
- which does not limit the total amount that can be given you as a borrower.
This includes revolving credit loans under mortgages.
Read Mortgages to find out more.
The lender must also disclose any agreed changes between you and the lender before they take effect.
If disclosure is not made or is incomplete or inaccurate, your credit contract is not enforceable, and you are not liable for the costs of borrowing during that time, until disclosure is made. The lender may also be penalised and you may be able to cancel some or all of the contract.
The law changed for credit contracts from 6 June 2015 and only applies to contracts entered into after that date.
Read the Commerce Commission’s fact sheet on how the changes to consumer law apply to contracts(external link) .