Wednesday, January 23, 2013 - Posted by Philip Harvey
In New Zealand, the
repossession agents have historically been self-regulated, with agents
being able to seize passports, medical equipment, bedding etc. The
Government will be laws to change this and bring in a licensing regime.
Credit providers have been able to include "drag net" clauses in
credit contracts allowing repossession of all personal property. The
new laws will restrict this to items that are itemised in the credit
contract. Certain property will not allowed be repossessed unless the
loan was specifically to buy them, including medical equipment,
bedding, portable heaters, stoves, washing machines,
cooking equipment, refrigerators, passports, identity documents
credit and eftpos cards.
Repossession agents have had almost no sanctions against them in
the past. The new laws will introduce criminal offences, civil remedies
and statutory damages.
Once the laws are introduce, repossession agents will have to be
licensed, of suitable character and have no serious criminal