A debt collector is chasing me in New Zealand, my rights

Last updated 20 June 2026. This is general information, not legal advice.

A debt collector’s letter or phone call is designed to make you feel cornered, and many of them lean on that feeling far harder than the law actually allows. The truth is that you have real rights, owing money is a civil matter and not a crime, and a great deal of what frightened debtors are told is either an exaggeration or simply not true. Knowing the line between what a collector can and cannot do, and the few traps to avoid, changes the whole conversation.

This guide explains how to check a debt is genuinely yours, what collectors are and are not allowed to do, the six-year rule that can make an old debt unenforceable, and your options if you cannot pay. It is general information, not legal advice.

First, is the debt even yours

Before anything else, do not assume a demand is correct just because it looks official. People are chased every day for debts that are wrong in amount, already paid, belong to someone else with a similar name, or are so old they can no longer be enforced. The collector is relying on you to pay rather than question it.

So your first step is to ask, in writing, for proof of the debt. You are entitled to ask who the original creditor was, what the debt is for, how the amount is made up, and the dates involved. A legitimate collector can provide this. If they cannot, or the details do not match your records, say so in writing and treat the debt as disputed until it is substantiated. Do not pay anything, and do not sign or agree to anything, until you are satisfied the debt is genuinely yours and the amount is right, because as you will see, a payment can have consequences beyond the money itself.

What a debt collector cannot do

Debt collectors are bound by the Fair Trading Act 1986 and overseen by the Commerce Commission, and the limits on them are real. A collector must not do any of the following.

• Harass or coerce you. They cannot contact you so often, or in such a way, that it amounts to harassment, and they cannot bully or intimidate you into paying.
• Mislead you. They cannot tell you they have filed court proceedings when they have not, or that they will when they have no intention of doing so, and they cannot pretend to be a court, a bailiff, a government agency or the police.
• Threaten you with arrest or prison. A normal debt is a civil matter, not a criminal one, so threats of arrest or jail to make you pay are false and unlawful.
• Shame you through others. Contacting your family, friends, neighbours or employer in a way designed to embarrass you into paying is not allowed.
• Add charges that are not owed, or simply take your property. A debt collector cannot help themselves to your goods. For an unsecured debt that needs a court judgment and the proper enforcement process, and only goods named as security in a credit contract can be repossessed, by a licensed repossession agent following the rules, not by the collector.

If a collector does any of these, keep a record of exactly what was said and when, and you can complain to the Commerce Commission, which has prosecuted collectors for misleading and harassing conduct.

What they can do

It is just as important to be realistic about what a collector legitimately can do, because pretending a genuine debt will vanish if ignored is its own kind of trap. A collector can contact you by phone, letter and email to ask you to pay a real debt. They can tell you, accurately, that they may take legal action if it is not paid. They can take you to the Disputes Tribunal or the District Court for a genuine debt, and if they obtain a judgment, they can enforce it through the court, for example by an attachment order that deducts money from your wages or benefit. A default can also be recorded on your credit file, which can affect your ability to borrow for up to five years.

So the right approach is not to stick your head in the sand, but to deal with a genuine debt on your terms, by checking it, disputing it if it is wrong, and arranging to pay what you really owe if you can.

The six-year rule, and the trap that restarts it

This is one of the most useful things to understand, and the one collectors least like to mention. Under the Limitation Act 2010, there is generally a six-year limit on suing to recover most ordinary debts. The clock runs from the last time you made a payment or acknowledged the debt in writing. If six years pass with no payment and no acknowledgement, the debt becomes what is called statute-barred, and the creditor can no longer enforce it through the courts.

Two things follow that matter enormously. First, a statute-barred debt is not enforceable in court, so a collector chasing a very old debt may have far less power than their letters suggest, though they are still allowed to ask you to pay it. Second, and this is the trap, making even a small payment, or admitting in writing that you owe the debt, restarts the six years from that date. This is exactly why a collector chasing an old debt may push for a token payment or an admission, because it resets the clock and revives their ability to sue. If a debt is genuinely old, get advice before you pay anything or put anything in writing acknowledging it, because a careless $20 can cost you years of exposure.

When the debt has been sold

Often the company chasing you is not the one you originally dealt with. Creditors frequently sell unpaid debts to debt collection agencies for a fraction of their value, and the agency then tries to collect the full amount. When this happens, the agency steps into the original creditor’s shoes, so it can pursue the debt, but it gets no more rights than the original creditor had.

That has practical consequences. The same six-year limit applies, measured from your last payment or acknowledgement to the original creditor, not from when the debt was sold. The amount owed does not legally increase just because the debt changed hands, even if fees are added. And you are still entitled to ask the agency to prove the debt and its right to collect it, which a reputable agency can do. If a collector cannot show the debt is yours and that they are entitled to collect it, you are right to question the whole thing.

If you cannot pay

If the debt is genuinely yours but you cannot pay it, ignoring it is the worst option. There are better ones.

• Apply for a hardship variation if it is a loan or other consumer credit contract. Under the Credit Contracts and Consumer Finance Act, if you cannot reasonably meet your repayments because of illness, injury, job loss or the end of a relationship, you can ask the lender to change the contract, for example to reduce payments or extend the term. The lender must respond within set timeframes. Apply early, because you generally cannot use the hardship route once you are two months or more behind or have missed four or more payments without first catching up.
• Propose a payment arrangement. Offer what you can realistically afford, in writing, even if it is small and regular. Many collectors will accept a sustainable arrangement over nothing, and getting it in writing protects you.
• Get free budgeting help. A free financial mentor can help you work out what you can pay, deal with creditors on your behalf, and prioritise your debts. This is what MoneyTalks and local budgeting services do, at no cost.
• Get advice on your wider options if the debt is unmanageable, including the no-asset procedure, for total debts between $1,000 and $50,000 with no realistic way to pay, and bankruptcy. These are significant steps, so take advice first.

If they take you to court

A letter threatening court is not court. But if a claim is actually filed against you, in the Disputes Tribunal or the District Court, you must respond by the date on the documents. The single biggest mistake people make is ignoring real court papers, because if you do not respond, the creditor can get a default judgment against you without the matter ever being properly tested, and that judgment can then be enforced.

If you do respond, you can dispute the debt if it is wrong, raise that it is statute-barred if it is genuinely old, or seek time to pay. Even at the enforcement stage, the court can order instalments you can actually afford rather than a lump sum. Our guide on the Disputes Tribunal explains how that process works, and it is the venue many debt claims end up in.

Where to get help and complain

You do not have to deal with this alone, and the help is free.

• MoneyTalks on 0800 345 123 is a free, confidential helpline that can talk through your situation and connect you with a financial mentor.
• A Community Law Centre or Citizens Advice Bureau can advise on your rights and help you respond to a collector or a court claim.
• The Commerce Commission takes complaints about collectors who harass or mislead, and a lender’s own dispute resolution scheme, which every lender must belong to, can handle complaints about a credit contract.

The takeaway

A debt collector has far less power than their tone implies, and you have far more than you might think. Make them prove the debt is yours, know that they cannot harass you, impersonate officials or threaten you with arrest, and be aware that an old debt may already be unenforceable, so long as you do not restart the clock with a payment or an admission. If the debt is real and you can pay, arrange it on terms you can manage. If you cannot, get free help rather than going silent. The one rule you cannot break is to never ignore an actual court document.

Related guides

• How to take someone to the Disputes Tribunal in New Zealand
• Your rights under the Consumer Guarantees Act

Frequently asked questions

Can a debt collector turn up at my house

A collector can contact you, including by visiting, to ask you to pay, but they cannot harass or intimidate you, and they cannot enter your home or take your property without your consent or a court order. If a visit becomes threatening or repeated to the point of harassment, that is unlawful, and you can ask them to deal with you only in writing and complain to the Commerce Commission.

Can I be arrested for not paying a debt in New Zealand

No. An ordinary debt is a civil matter, not a crime, so you cannot be arrested or imprisoned simply for not paying it. Any collector who threatens you with arrest or prison to make you pay is acting unlawfully. The real consequence of an unpaid genuine debt is a possible court claim and, if a judgment is made, enforcement such as deductions from your wages.

How long can a debt be chased in New Zealand

Generally a creditor has six years to sue to recover most debts, running from your last payment or written acknowledgement. After six years with neither, the debt becomes statute-barred and cannot be enforced in court, though a collector can still ask you to pay. Making a payment or admitting the debt in writing restarts the six years, so be careful with an old debt.

Should I pay a very old debt

Get advice before you do. If a debt is more than six years old with no payment or acknowledgement in that time, it may be statute-barred and unenforceable, and making a payment or admitting it in writing can restart the clock and revive the creditor’s right to sue. That does not mean you should lie about a debt, but you should understand the position before paying or signing anything.

What if the debt is not mine or the amount is wrong

Dispute it in writing and ask the collector to prove the debt, including who the original creditor was, what it is for and how the amount is calculated. Do not pay or acknowledge a debt you do not accept. If the collector cannot substantiate it, or the details are wrong, treat it as disputed, keep your correspondence, and complain to the Commerce Commission if they keep pursuing it improperly.

I cannot afford to pay, what can I do

Do not ignore it. If it is a loan, you can apply to the lender for a hardship variation to reduce or pause payments. You can propose a realistic payment arrangement in writing, and a free financial mentor through MoneyTalks on 0800 345 123 can help you work out what you can afford and deal with creditors. For unmanageable debt, get advice on the formal no-asset and insolvency options.

Does it change anything if my debt was sold to a collection agency

The agency steps into the original creditor’s shoes, so it can pursue the debt but gets no more rights than the original creditor had. The six-year limit still runs from your last payment or acknowledgement to the original creditor, and the amount does not legally grow just because the debt changed hands. You can still require the agency to prove the debt and its right to collect it.

Have you dealt with a debt collector in New Zealand, or had an unfair one pulled up? Tell us how it went in the comments below.