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COMMERCIAL LAW II: PERSONAL PROPERTY SECURITY & CREDITHANDOUTSchool of Law LAWS 332 - - Act Credit Contracts and Consumer Finance 1 Introduction.................................................................................................... Overview 1 Credit Contracts and Consumer Financ...

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COMMERCIALLAW I I : PERSONALPROPERTYSECURITY& CREDIT LAWS33 2-20 2 0

HANDOUT

Sc hoolofLa w

Cr e di tCont r a c t sa ndCons ume rFi na nc eAc t2 00 3

Over vi e w 1

I nt r oduc t i on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 . 1 Cr e di tCo nt r a c t sa ndCo ns ume rFi na nc eAc t20 03. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 . 2 Pur po s e , Se c t i o n3CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

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Oppr es s i veCr edi tCont r ac t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 . 1 Cr e di tCo nt r a c t s–s s7CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 . 2 Re o pe ni ngOpp r e s s i veCo nt r a c t s–s s1 17 1 3 1CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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Cons ume rCr edi tCont r ac t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 . 1 Co ns ume rCr e d i tCo nt r a c t–s s1 115CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 . 2 Co nt r a c tRe q ui r e me nt s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3 . 3 Te r mi na t i o no fCo ns ume rCr e di tCo nt r a c t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3 . 4 Unf o r e s e e nHa r d s hi p–s s555 9CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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Cons ume rLea s esandHi r ePur c has eAgr eeme nt s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 4 . 1 Co ns ume rLe a s e , s s6 068CCCF A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4 . 2 Hi r ePur c ha s eAgr e e me nt s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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Reme di esandEnf or c e ment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5 . 1 Re me d i e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 5 . 2 Enf o r c e me nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

1 I nt r oduc t i on 1 . 1Cr e di tCont r ac t sandCons ume rFi nanc eAc t2003 1 . 2Pur pos e ,Se c t i on3CCCFA

2 Oppr e s s i veCr e di tCont r a c t s 2 . 1Cr e di tCont r ac t s–s s7CCCFA Pr obl e m I( Cr e di tCont r ac t s ) Bo bwa nt st ob uyac o mput e r ,b utdo e s n’ tha vet her e q ui r e dmo ne y .Ma t tt e l l sh i mt ha th eha s s e ve r a lo p t i o ns : a ) Bo bc a ng ot oab a nka ndb o r r o wt h er e q ui r e ds um. b ) Hec a nb uyt hec o mput e rus i ngo neo ft h er e t a i l e r sfina nc eo p t i o ns ,a ndpa yt he c o mput e ro ffo v e rap e r i o do ft i me . c ) Hec a np a yf o rt hec o mp ut e rwi t hhi sc r e d i tc a r d . d ) Hec a ns e l lMa t thi sTV f o r$ 1, 000t or a i s et h emo ne yf o rt h ec o mp ut e r .Ma t tpr o mi s e s t os e l li tb a c kt oBo ba f t e ro neye a rf o r$ 1, 100. Fo rwhi c ho ft he s eo p t i o nswo ul dBo be nt e ri nt oac r e di tc o nt r a c t ?

2 . 1 . 1 Loan, De f e r r e dPa yme ntSal e Ex ampl e( Loa n) : Bo bg o e st oFi no fFi n’ sFr i e ndl yFi na nc e r sLt da nda s k sh i mt ol e ndhi m$1000s ohe c a nb uyac o mp ut e r .Fi nr ub shi sh a nds ,gi ve shi mt h emo ne y ,a nds a yst ha tBo bh a s t or e pa yt hemo ne ypl us$ 500i nt e r e s twi t h i naye a r .

Ex ampl e( Def er r edPa yme ntSal e) : Bo bg o e st oSe t ho fSe t h’ sEl e c t r o ni c sLt da nda s k sh i ma b o utfina nc i ngo p t i o nsf o r t hec o mput e r .Se t ht e l l shi mt ha the ’ l lo nl yh a v et opa y$24. 99awe e kf o rane g l i gi b l e 5 2We e k s . 2 . 1 . 2 Re vol vi ngCr e di tCont r ac t s  Re vol vi ngCr e di tCont r ac t , s5 2 . 1 . 3 Cr e di tc ont r a c t si ns ubs t anc e ,s7( 2 )

LAWS3 32–CCCF A( Ha ndout )

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2 . 2Re ope ni ngOppr e s s i veCont r ac t s–s s1 17131CCCFA 2 . 2 . 1   

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Me ani ngofOppr e s s i ve–s118CCCF A Me ani ngofOppr e s s i ve ne s s, s1 18CCCF A Re ope ni ngc r e di tc ont r ac t sandc ons ume rl e a s e s ,s120CCCF A Gi b s o nvDe a l e rDi s c o unt( Ca nt e r b ur y )Lt d( 1 984)1NZBLC10 2, 051  De bt ori nduc e dt oe nt e ri nt oc ont r ac tbyoppr e s s i veme ans Ba r t l evGECus t o d i a nsLt d[ 2010 ]NZCA174 ,( 2010 )9NZBLC10 2, 9 46( CA)  1 73: Notj us tdi s a dvant a ge ous ,oppr e s s i onbyl e nde r , e xe r c i s eofr i ght si snot oppr e s s i onbutc anbe c omeunr e as onabl e , f orunr e a s onabl es t a ndar dst he r e mus tbee vi de nc e GECus t o di a nsLt dvBa r t l e[ 2 010]NZSC146( SC) Bur k evAd v a nc e dSe c ur i t i e sLt d( 200 8)8NZBLC1 02, 263 o Loan ha st o be f orPDH pur pos e st o be c ons ume rc r e di tc ont r ac t( ma de de c l ar a t i onsandc i r c ums t anc e spr o ve di twa sf orbus i ne s spur pos e s ) Sho t t e rvWe s t pa cBa nk i ngCo r p[ 1988]2NZLR316 o Mus tbemor et hanj us tunf a i r I t a l i aHo l di ng s( Pr o p e r t i e s )Lt dvLo ns da l eHo l di ng s( Auc k l a nd )Lt d[ 1984]2NZLR1 o Oppr e s s i ve : notj us tme r e l ydi s a dva nt a ge ousf orD o Ha r s h: r e a lde t r i me ntorhar ds hi pf orD o Unj us t l ybur de ns ome: l a c kofj us t i fic a t i onf orbur de ni mpos e d o Unc ons c i onabl e :s ome t hi ngbe yondunf a i r ne s s o Br e a c hofr e a s ona bl ec omme r c i als t anda r d:notme r e l ya nuni nf or me dde c i s i on

2 . 2 . 2 Gui de l i ne sf orRe openi ng–s124CCCF A ( a )Re a s o na b l eSt a nda r d so fCo mme r c i a lPr a c t i c e 

Gr e e nb a nkNZLt dvHa a s[ 2000]3NZLR341 “ I nt h ec o nt e xtt hec o mpa r a t o rc a no nl yb ewha two ul db ee xpe c t e do ra c c e p t a b l e i nt e r mso fr e a s o na b l es t a nda r dso fc o mme r c i a lpr a c t i c e .Co nve r s e l y ,s o me t hi ng wh i c hi sno ti na c c o r d a nc ewi t h[ . . . ]s uc hs t a nda r dsi s ,b yde fini t i o n,o ppr e s s i v e ” –Ti ppi ngJ 2 00% i nt e r e s tr a t ei snotoppr e s s i veduet ot hena t ur eoft hel oa n;t hehi gh r i s kt heba nkwa st aki ng

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Evi de nc e ,s126CCCF A: Ro b s o nvSho r t t , unr e por t e d,CI V2007 4 04223, 21De c e mbe r2007, As s cJ udge Sar gi s s on  Of t e npa ys l i ght l yl e s st hanr e qui r e me nt( e . g. $10i ni t i a l l yt he n$4050 s hor t ) ,he l dt ha tde f aul tf e e sdi s pr opor t i ona t et ot heamounts he mi s s e dpa yme ntf or Sa r i naI nv e s t me nt sLt dvSa di q ,unr e por t e d,CI V20094045472, 29Apr i l2 010, HughWi l l i amsJ r owe dmone yf ori nve s t me ntbutwa spl a c e dona3rd/4thmor t ga ge  Bor t he r e f or ehi ghr i s kf orl e nde rt he r e f or ehi ghde f aul tf e er e as onabl e Hui r a mavTr i ma cFi na nc eLt d( 20 00)8NZCLC2 62, 154 “ [ i t ]c a nno tb ef o rt hefina nc ei ndus t r yi t s e l ft od i c t a t ewha ti so p pr e s s i v ea nd wha ti sno t . ”–HammondJ

LAWS3 32–CCCF A( Ha ndout )

Pa ge3

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Ra p t o r i a lHo l di ng sLt d( i nr e c )vEl de r sPa s t o r a lHo l di ng sLt d[ 2001]1NZLR17 8 Ba r t l evGECus t o di a nsLt d[ 201 0]NZCA1 74, ( 2 010)9NZBLC1 02, 946( CA) “ Re a s o na b l es t a nda r dso fc o mme r c i a lpr a c t i c ea c c e p t a b l et ot hec o mmuni t y”– Ha mmondJ

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Fo r t e svBa nko fNe wZe a l a nd[ 201 4]NZCA3 46 Ca mb r i d g eCl o t hi ngCoLt dvSi mps o n[ 198 8]2NZLR3 40

( b ) I ne q ua l i t yo fBa r g a i ni ngPo we r  Ca mb r i d g eCl o t hi ngCoLt dvSi mps o n[ 198 8]2NZLR3 40 Unc ons c i onabi l i t y  Pr ude nt i a lBui l di ng&I nve s t me ntSo c i e t yvHa nk i ns[ 1997]1NZLR11 4  Bo wk e t tvAc t i o nFi na nc e[ 1992 ]1NZLR4 49  Gus t a v&CoLt dvMa c fie l dLt d[ 20 08]NZSC47; [ 2008 ]2NZLR735  Wi l l i a msvWa l h o ma sFur ni t ur eCo350F2d44 5( DCCi r19 65)( a br i dge d) “ unc o ns c i o na b i l i t yha sg e ne r a l l yb e e nr e c o gni s e dt oi nc l ud ea na b s e nc eo f me a ni ngf ulc h o i c eo nt hepa r to fo neo ft h epa r t i e s ,t o g e t he rwi t hc o nt r a c t t e r mswh i c ha r eunr e a s o na b l yf a v o ur a b l et ot h eo t h e rp a r t y”  Ba r t l evGECus t o d i a nsLt d[ 2010 ]NZCA174 ,( 2010 )9NZBLC10 2, 9 46( CA)  GECus t o di a nsLt dvBa r t l e[ 2 010]NZSC146( SC) I nde pe ndentLe galAdvi c e  Ca mb r i d g eCl o t hi ngCoLt dvSi mps o n[ 198 8]2NZLR3 40  I t a l i aHo l di ng s( Pr o pe r t i e s )Lt dv Lo ns da l eHo l di ng s( Auc k l a nd )Lt d[ 1984 ]2 NZLR1  J e nk i nsvNZIFi na nc eLt d( 19 913NZBLC1 02, 198  Ba r t l evGECus t o d i a nsLt d[ 2010 ]NZCA174 ,( 2010 )9NZBLC10 2, 9 46( CA)  GECus t o di a nsLt dvBa r t l e[ 2 010]NZSC146( SC)  Wi l k i ns o nvASBBa nkLt d[ 199 8]1NZLR67 4 ( c )Ot h e rGui de l i ne s  I t a l i aHo l di ngs( Pr o pe r t i e s )Lt dvLo ns da l eHo l di ng s( Auc k l a nd )Lt d[ 1984]2NZLR1  Ma ni o nvMa r a cFi na nc eLt d[ 19 86]2NZLR586 2 . 2 . 3 Ot he rPr ovi s i ons ( a )Li nk e dTr a ns a c t i o ns–s119CCCF A ( b )Cr e d i tCo nt r a c tAr r a ng e me nt–s122CCCF A Ex ampl e( Cr e di tCont r ac tAr r angement ) : Bo be nt e r si nt oac r e di tc o nt r a c twi t hFi nf o r$5000 .Thet e r mso ft hec o nt r a c ts a y t ha tBo bha st or e pa yt h ec r e di ta f t e ro ney e a ra ta ni nt e r e s tr a t eo f20% p a ,at o t a lo f $ 6000.I fBo bde f a ul t s ,hewi l lb ec ha r g e dwi t hape na l t yi nt e r e s tr a t eo f50 0% pa . Af t e raye a r ,Bo br e a l i s e st h a th ewi l lno tb ea b l et or e pa yt h ec r e d i ti nt i me .I no r d e r t ono tha v et opa yt hep e na l t yi nt e r e s tr a t e ,Bo bt a k e so uta no t he rc r e d i tf r o m Fi nf o r $ 6000, whi c hh eus e st opa yt hefir s tc r e di t . ( c )NoRe t r o s pe c t i v eAppl i c a t i o n–s123CCCF A  Gr e e nb a nkNZLt dvHa a s[ 2000]3NZLR341

LAWS3 32–CCCF A( Ha ndout )

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3 Cons ume rCr e di tCont r ac t s 3 . 1Cons ume rCr e di tCont r ac t–s s1115CCCFA Pr obl e mI I( Cons ume rCr e di tCont r ac t s ) Bo bwa nt st ob uyane wc o mput e r .Hepa r t i c ul a r l yl i k e st ous ef a c e b o o ka ndp l a yo nl i neg a me s , b uthea l s owa nt st oc he c khi swo r k e ma i l sa ndc o mpo s eb us i ne s sl e t t e r so c c a s i o na l l y . Thec o mp ut e rh eha sh i se ye so nha sapr i c eo f$ 2, 299.Ho we ve r ,hedo e sno tha v et hec a s ht opa y f o ri ta to nc e .Se t hf r o m Se t h’ sEl e c t r o ni c sSt o r et e l l sh i mt ha th ec a np a yo fft hec o mput e ro v e ra y e a r ,wi t hwe e k l yp a yme nt so f$65.Se t hwi l lr e t a i nt i t l et ot hec o mput e runt i lBo bha sma d et he fina lpa y me nt . I sBo b ’ sa gr e e me ntwi t hSe t hac o ns ume rc r e d i tc o nt r a c t ?

3 . 1 . 1 Re qui r e me nt s–s s10 1 4CCCF A 

Me ani ngofc ons ume rc r e di tc ont r ac t , s1 1CCCF A

Ex ampl e( pdhpur pos e ) : Bo bwa nt st ob o r r o w $5 0, 0 00.Hewi l lus e$2 0, 000t oc o ve rb us i ne s se xpe ns e s , a nd$3 0, 000t ob uyane wMe r c e de s ,whi c hhewi l lus ea saf a mi l yc a r ,b uta l s o d r i v et oa ndf r o mb us i ne s sc l i e nt s . Aye a rl a t e r ,heb uy saTo y o t a .Heno wus e st h eMe r c e d e so nl yt ov i s i tb us i ne s s c l i e nt s . a) the debtor must be a natural person, and  Excluded:  Companies  Incorporated Societies  Trustees of Family Trusts (s 15(1)) b) the credit is to be used, wholly or predominantly for personal, domestic or household purposes, and  Personal, Domestic, or Household (pdh)  Wholly or predominantly for pdh-purposes  S 11(1A):  More than 50% of the credit for consumer purpose, or  If several purposes, the purpose for which the goods or services are most used  Time of entering into contract essential c) interest charges or credit fees may be payable under the contract, or a security interest may be taken under the contract, and  Interest Charges – percentage of purchase price  Credit Fees – set fee added to purchase price  Security interest – definition in s 5:

LAWS3 32–CCCF A( Ha ndout )

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An interest in property created or provided for by a transaction that … secures payment … under a credit contract ... d) when the contract is entered into, the creditor gives out credits as part of his or her business.  Does not have to be only or primary business  Purpose is to exclude credit by friends or family S12–I nves t me ntPur pos es • Loansf ori nve s t me ntpur pos e snotpdhus e S13–Pr es umpt i on • Cr e di tc ont r ac ti spr e s ume dt obeCCC 

Effe c tofde c l ar a t i on, s14CCCF A Ex ampl e( I neffec t i veDec l a r at i on–s14( 2) ) : Bo bwa nt sal a r g e rTV t owa t c ht heSno o k e rWo r l dCha mp i o ns hi ps .Se t ht e l l s h i mt ha th ec a nt a k et heTV h o meno wa nde nj o yh i sSno o k e r ,a ndpa yi to ff o v e rap e r i o do f36mo nt hs . Al lBo bha st odoi st os i g nade c l a r a t i o nt ha thewi l l us et heTV o nl yf o rb us i ne s sp ur po s e s .Bo bd o e s n’ tr e a l l yc a r e ,s ohes i gnst he d e c l a r a t i o n.

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S14 ( 1)–Dec l a r at i on • Credit to be used primarily for business/investment • Effect  CCCFA does not apply S 14(2) – Creditor’s Knowledge • Not effective, if Creditor knew that the person was going to use it for pdhpurpose Sec ur i t yi nt e r e s t s–de fini t i on,s5CCCF A: Ex ampl e( I nt er es t , s e c ur i t yi nt er es t ) : Bo bb uy sane wl o ung es ui t ef r o m Ro no nhi r epur c ha s e .Hewi l lha v et oma k e mo nt hl ypa yme nt so f$99f o rt h edur a t i o no f48mo nt hs .Ro nwi l lr e t a i nt i t l et o t hel o ung es ui t eunt i lBo bpa ysi to ffe nt i r e l y .

LAWS3 32–CCCF A( Ha ndout )

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3 . 1 . 2 Ex c e pt i ons–s 15CCCF A 3 . 2Cont r ac tRe qui r e me nt s 3 . 2 . 1 Le nde rRe s pons i bi l i t i e s–s s9A–9 LCCCF A Pr obl e mI I I( r e s pons i bl el e ndi ng) Al f r e ds e e st h ef o l l o wi nga di nt h ene ws p a pe r :

Al f r e dd o e s n’ tha v et hemo ne ya ndwa nt st os e ewhe t h e rt he r ea r eb e t t e rpa yme ntt e r ms o utt h e r e .Hea s k sBi l l ’ sFi na nc eI nct ol e ndh i m$ 30, 000. Th el o a npa yme nt swo ul db e $ 1, 246f o r t ni g h t l y . a ) OnBi l l ’ si nq ui r y ,Al f r e ds a yst ha thi ss a l a r yi s$1 , 500af o r t ni g h t . b) OnBi l l ’ si nq ui r y , Al f r e ds a yst ha thi ss a l a r yi s$3 , 000af o r t ni g h t . Hea l s oha st o ma k ef o r t ni g ht l ymo r t g a g epa yme nt so f$1 , 4 73.

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Le nde rRe s pons i bi l i t yPr i nc i pl e s , s9 CCCCF A o The lender must, eg  Make reasonable inquiries into  borrower’s requirements and objectives; and  potential substantial hardship  Extent of inquiries o The extend depends on the nature of the borrow; especially if they are in a vulnerable situation e.g. inexperienced borrower or in a desperate situation, unable to understand nature of the contract, language barrier o Depends on subjective inquiry at that time, lenders have to act on the side of wary; there is a guideline for lenders, if in doubt make more inquiries o Vulnerable borrower

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LAWS3 32–CCCF A( Ha ndout )

 Unlikely to understand nature of credit  Under pressure to obtain credit Well-informed user of credit

 Experienced borrower  Not vulnerable borrower Assist in making informed decisions  Advertising o Have to make sure not to mislead borrowers; have as much information as possible to make informed decision o In this example, it does not state how long the term is, thus is not sure what the total cost is and putting the wording “guaranteed” Pa ge7

Key features of the contract must be made known e.g. interest rates, cancellation rights etc.  Key features  Level of assistance o Vulnerable borrowers o Well-informed users of credit  Treat borrower reasonably and ethically  Abstain from oppressiveness  Meet all legal obligations  Registration under Financial Service Providers (Registration and Dispute Resolution) Act 2008  Other obligations e.g. Consumer Guarantees Act Agr ee me nt , s9BCCCF A o S 9B: Agreement means-o a consumer credit contract or o a contract under which the creditor may repossess consumer goods. Re s pons i bl eLe ndi ngCode , s s9E9FCCCF A o Not binding, s 9E(2) St andar df or mc ont r ac tt e r ms , s9JCCCF A o Te r mst ha ta r ep r e pa r e db yt h el e nde ra ndus e di nc o nc l ud i ngc o ns ume rc r e d i t c o nt r a c t s Cos tofbor r owi ng, s9 KCCCF A o Cr e di tf e e s , de f a ul tf e e s , i nt e r e s tc ha r g e s o Requirements  Internet  Business premises  on request (free of charge) o

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LAWS3 32–CCCF A( Ha ndout )

Pa ge8

3 . 2 . 2 Di s c l os ur e–s s17–26, s s32–35CCCF A ( a )Di s c l o s ur eSt a nda r ds–s s32–3 5CCCF A Pr obl e mI V( di s c l os ur es t andar ds ) Al b e r ta ndBe t ha r efla t ma t e sa ndwa ntt ob uyane w TV f o rt he i rl i vi ngr o o m.The y d o n’ tha v et h emo...