New Zealand Credit Contracts and Consumer Finance Act 2003 55-59A: Unforeseen hardship: acknowledge, request information, decide and notify within the statutory timetable, and give reasons for a refusal

What does 55-59A require?

A debtor who cannot reasonably meet their obligations for a reasonable cause such as illness, injury, job loss or a relationship ending, and who expects to manage if the contract were changed, may apply in writing for an extension of the term, a postponement of payments or both. The creditor must acknowledge the application in writing within five working days (with the dispute resolution and financial mentoring information), request any further information needed within ten working days, decide within 20 working days of receiving the application or the further information, give written notice of the decision with reasons and the changed terms or the right to complain, and must not treat the debtor as in default for the purposes of enforcement while the application is being considered, subject to the limits in section 57. Courts may order changes and creditors may apply to vary them.