Request disclosure under a consumer credit contract

Any borrower in a consumer credit contract may write to their lender to ask for specific information about their contract. This is known as request disclosure.

If someone has agreed to pay back the debt if the borrower doesn’t (a guarantor), they also have the right to ask the lender for certain information about the contract.

When does a lender have to provide request disclosure?

A lender must give the borrower or any guarantor request disclosure within 15 working days of being asked for it. Unless the lender has the right under the contract to charge for request disclosure, they must provide it free of charge.

A lender does not have to provide request disclosure if either:

• the lender has already given the information to the borrower or guarantor in the previous three months

or

• the borrower or guarantor asks for the information more than a year after the contract has ended.

Lenders may charge borrowers a fee for providing request disclosure. However, if the lender does charge a fee they must ensure:

• the fee is reasonable and reflects the cost of preparing the disclosure
• the contract allows the lender to charge this fee

and

• the lender has disclosed the fee to the borrower.

You can read more in our fact sheet Fees under a consumer credit contract.

If they charge a fee, the lender must provide request disclosure within 15 working days of the borrower or guarantor paying the fee.

What information can a borrower or guarantor ask for?

A borrower or guarantor can ask for information about:

• the effect on the borrower’s obligations of paying off some of their debt early
• what fee the borrower must pay if they pay off some of their debt early, and how the lender will calculate it – you can read more in our fact sheet Payments under a consumer credit contract at www.comcom.govt.nz/payments
• what a borrower must pay to clear all of their debt on a specified date and how the lender will work out the amount
• full details of any changes to the contract since it was made
• the unpaid balance, including any outstanding interest charge (calculated at the date the disclosure statement is prepared)
• what payments the borrower must make (or how those payments are calculated)
• how often the borrower needs to make payments
• the number of payments the borrower must make
• the total amount of payments the borrower must make under the contract
• a copy of any disclosure statement that the lender has already provided or should have provided before the request was made.

The Credit Contracts and Consumer Finance Act (CCCF Act) sets out the specific information a lender must give a borrower about their contract if asked. This does not, however, limit what a borrower or guarantor can ask a lender about their contract. A lender doesn’t have to provide additional information about a borrower’s contract, but if it helps the borrower manage their debt better and isn’t too onerous, the lender may choose to do so.

How does a lender provide request disclosure?

A lender must provide request disclosure in writing, either in a single document or in a series of related documents. The information must be clear and concise so that a reasonable person will see it. The overall effect must not be misleading or deceptive.

A lender must provide request disclosure by either:

• giving a disclosure statement to the borrower or guarantor in person
• posting a disclosure statement to the borrower’s or guarantor’s last known address

or

• emailing or faxing a disclosure statement to the borrower or guarantor (as long as they have agreed to this).

Related pages

• Disclosure
• Initial disclosure under a consumer credit contract
• Continuing disclosure under a consumer credit contract
• Guarantee disclosure under a consumer credit contract
• Variation disclosure under a consumer credit contract