OIA Follow-Up Submission to MBIE (OIA Request Ref: 20260193)

 

To: Ministry of Business, Innovation & Employment

From: Tracy Lynch

Email: [email protected]

Dated today 

26th March 2026

 

Re: Official Information Act Request – Transferred from Treasury (Ref: 20260193)

 

1. Introduction

 

I refer to the above request, transferred to MBIE by the Treasury under section 14(b)(ii) of the Official Information Act 1982.

 

This correspondence is provided to:

• Clarify the scope of the request;

• Emphasise the legal precision required in the response; and

• Ensure that the statutory and regulatory basis for the matters raised is addressed directly and exhaustively.

 

2. Core Issue

 

The central issue raised is whether non-court enforcement actions by registered banks—including:

• unilateral removal of funds; and

• mortgagee sale without judicial oversight

 

are supported by:

• clear statutory authority, or

• merely by private contractual arrangements supplemented by statute.

 

3. Requirement for Specific Statutory Authority

 

For the avoidance of doubt, I require MBIE to:

 

3.1 Express Statutory Identification

 

Identify each specific statutory provision (Act and section) that:

 

a) Authorises a registered bank to debit or remove funds from a customer account without a court order;

 

b) Authorises a mortgagee to:

• enforce default; and/or

• exercise power of sale

absent prior judicial approval.

 

3.2 Nature of Legal Authority

 

For each identified power, please clarify whether it arises from:

• (i) Primary legislation (express statutory conferment of power);

• (ii) Implied statutory recognition of contractual rights; or

• (iii) Purely contractual mechanisms operating within a statutory framework.

 

4. Regulatory and Supervisory Framework

 

4.1 Oversight

 

Please identify:

• The specific agency (or agencies) responsible for oversight of:

• non-court mortgage enforcement; and

• bank account fund withdrawal practices.

 

4.2 Legal Instruments

 

Provide:

• Any regulations, codes, prudential standards, or binding guidance governing such conduct;

• Any mandatory compliance or reporting obligations imposed on banks.

 

5. Procedural Safeguards

 

5.1 Notice Requirements

 

Please specify:

• The minimum statutory notice periods required prior to:

• enforcement action;

• mortgagee sale.

 

5.2 Service and Fairness

 

Identify any:

• Prescribed methods of service;

• Statutory or regulatory fairness obligations;

• Guidance issued by MBIE concerning:

• procedural safeguards;

• borrower protections.

 

6. Regulatory Approval or Endorsement

 

Please confirm whether MBIE has:

• Formally approved, endorsed, or reviewed the practice of:

• non-court mortgage enforcement;

• unilateral bank account debiting;

• Issued any:

• circulars;

• advisories;

• internal memoranda

relating to such practices.

 

If no such materials exist, please confirm this expressly.

 

7. Evidentiary Standard of Response

 

Given the constitutional significance of extra-judicial enforcement powers, I request that:

• All answers be supported by:

• specific statutory citations; and

• identification of binding legal instruments, where applicable.

 

Generalised or descriptive responses will not be sufficient.

 

8. Residual Obligation

 

If any part of this request falls outside MBIE’s functions:

• Please identify the correct agency; and

• Transfer that portion in accordance with section 14 of the OIA.

 

9. Conclusion

 

This request concerns the legal legitimacy and regulatory basis of coercive financial powers exercised without court supervision.

 

Accordingly, a precise, statute-based response is required.

 

Yours faithfully

Tracy Lynch