Credit (Repossession) Act
You can only repossess when the security interest is specified in the contract. You must follow the six steps of repossession.
If you wish to be able to repossess goods, it must be a term of the credit sales contract, and you must disclose the security interest in the goods to the customer.
Two circumstances may lead to repossessing goods:
- The customer is in default under the contract.
- The creditor has reasonable grounds to believe the goods are at risk (have been or will be destroyed, damaged, endangered, disassembled, removed, or concealed contrary to the contract provisions).
The Credit (Repossession) Act only applies to consumer goods – goods that are used primarily for personal, domestic or household purposes.
What you can repossess
The six steps to repossession
Pre-possession notice
Post-possession notice
Example statement of account after sale
Voluntary return of goods
Repossessing non-consumer goods
The rules for repossessing goods that are not used or acquired for use primarily for personal, domestic or household use are provided in Part 9 of the Personal Property Securities Act 1999.
Visit the Personal Property Securities Register.
The Credit Contracts and Consumer Finance Act may prohibit enforcement of the right to repossess if the Act has not been complied with. For example, the contract cannot be enforced if you did not make initial disclosure to the customer including any right to take possession of the goods.
Find out more about the Credit Contracts and Consumer Finance Act.
- This information is provided by Ministry of Consumer Affairs
Credit (Repossession) Act | Consumer Affairs
