Business Meridian
New recovery rules expected to apply from January 2027 address a question facing people who buy phones, tablets or laptops through loans: can a lender lock the device after missed instalments?
The answer is conditional. The loan agreement must clearly say that features can be restricted after default. A lender cannot act immediately; the account must remain overdue for more than 30 days after notice, and a complete restriction is allowed only after 60 days of non-payment.
Incoming calls, SMS and emergency SOS functions must continue. Banks and third-party technology companies cannot access personal photos, contacts, messages, call logs or location history stored on the device.
Recovery agents will be limited to calls between 8am and 7pm and may discuss the loan only with the borrower or guarantor. Harassment of neighbours, colleagues or relatives is prohibited, and calls must be recorded and kept for at least six months.
When arrears are paid, services must be restored within an hour. The framework attempts to balance recovery with privacy and basic access, but customers should read the financing agreement before accepting a device loan.