iSAYSO
Follow-Up: Identification of Statutory Authority for Non-Court Mortgage Enforcement
OFFICIAL INFORMATION ACT REQUEST
From:
Tracy Lynch
Date: 02 March 2026
To:
Ministry of Justice
Ministry of Business, Innovation and Employment (MBIE)
Commerce Commission
Financial Markets Authority
Greetings,
I refer to the Reserve Bank of New Zealand response dated 2 March 2026 (ref: OIA2526_147), which confirmed that the RBNZ is not responsible for the laws relating to removal of funds without court orders or mortgage defaults, and holds no information regarding regulatory approval, endorsement, or guidance permitting such practices.
In light of that clarification, I now seek the following information from your agency under the Official Information Act 1982.
1. Statutory Authority
Please identify the specific statutory provisions relied upon in New Zealand that permit:
a) A registered bank to remove funds from a customer’s account without a court order;
b) A mortgagee to initiate default enforcement and/or mortgagee sale without prior court oversight.
Please cite the relevant Act name, section numbers, and any applicable regulations.
2. Nature of Enforcement
Please confirm whether non-court mortgage enforcement in New Zealand operates solely under contractual terms and the Property Law Act 2007, or under any regulatory, prudential, or supervisory framework administered by your agency. If regulatory oversight exists, please identify the relevant instrument or authority.
3. Notice and Service Requirements
Please provide the statutory minimum notice requirements prior to mortgagee enforcement or sale, any mandatory service standards, and any guidance issued by your agency regarding enforcement fairness, procedural safeguards, or borrower protection.
4. Oversight and Complaints
Please confirm which agency is responsible for oversight of mortgagee enforcement conduct where no court order has been obtained, and whether any audit, supervisory, or reporting requirement is imposed on banks in relation to non-court enforcement actions.
5. Regulatory Approval
Please confirm whether your agency has approved, endorsed, or formally reviewed the practice of non-court mortgage enforcement by registered banks, or issued any circulars, advisories, or internal memoranda on this topic. If none exist, please confirm this explicitly.
This request does not seek legal advice. It seeks identification of the legislative and regulatory framework relied upon for non-court enforcement actions.
I request the information in electronic form.
Given the significance of enforcement actions affecting primary residences and private property, clarity regarding the statutory and regulatory basis for such actions is in the public interest.
Nāku noa, nā
Tracy Lynch
Ref #23361268 v2.0
UNCLASSIFIED
UNCLASSIFIED
2 March 2026 ref: OIA2526_147
Tracy Lynch
By email: [email protected]
Tēnā koe Tracy
Information about Identification of Legal Authority Relied Upon by Banks for Non-Court
Mortgage Enforcement
Thank you for your 4 February 2026 request under the Official Information Act 1982 (OIA). We will
answer each of your questions in turn.
1. Identification of the specific statutory provisions, regulations, prudential standards,
directives, or regulatory instruments relied upon by banks to:
– Remove funds from accounts without court orders
– Initiate mortgage defaults without court oversight
Response:
RBNZ is not responsible for the laws relating to removing funds from accounts without
court orders or those applying to mortgage defaults.
2. Whether the Reserve Bank has approved, endorsed, or issued guidance permitting
such practices.
Response:
The Reserve Bank of New Zealand has no information on this. Therefore, we are
refusing this part of your request under section 18(e) of the OIA, as the information
requested does not exist.
3. Any guidance regarding notice or service requirements prior to enforcement.
Response:
The Reserve Bank of New Zealand has no information on this. Therefore, we are
refusing this part of your request under section 18(e) of the OIA, as the information
requested does not exist.
2
2
UNCLASSIFIED
This response may be published on the RBNZ website during our regular publication cycle.
Typically, information is released monthly, or as otherwise determined. If we publish this response,
your name and contact details will be removed before publication.
We encourage you to raise any concerns you have about this response with the RBNZ directly.
Alternatively, you have the right to seek an investigation and review of this response from the
Office of the Ombudsman. Information about how to make a complaint is publicly available, at
www.ombudsman.parliament.nz or freephone 0800 802 602.
Nāku noa, nā
John Grey
Manager, Governance and OIA