Stricter laws for repossession agents

  • Paul Goldsmith
  • Simon Bridges
Justice Commerce and Consumer Affairs

Associate Minister of Justice Simon Bridges and Commerce and Consumer Affairs Minister Paul Goldsmith have today announced strict new laws that will better protect the public from repossession agents engaging in unscrupulous practises.

“The changes mean that all repossession agents, as well as their employees, must be registered and licensed from 6 June 2015”, Mr Bridges says.

Applications for licenses will be accepted from 6 March 2015.

“Those who breach the new laws can be fined up to $40,000 under the Private Security Personnel and Private Investigators Act”, he says.

The mandatory licensing is one of a number of changes that increase consumer protection under the Credit Contracts and Consumer Finance Amendments Act 2014 (CCCF Act).

“A creditor will not be able to repossess an item unless it is specifically identified in the credit contract, and agents are no longer allowed to take certain essential items like beds and cooking equipment”, Mr Goldsmith says.

“The Commerce Commission will also be enforcing the rules and ensuring that repossessions are carried out lawfully.”

Under the CCCF Act a lender who uses an unlicensed agent will also be liable on conviction for a fine of up to $600,000.

For more information about the application criteria and process visit www.pspla.govt.nz.