Government seeks feedback on changes to consumer credit regulation

Government is calling to hear public comments and suggestions around various issues

Government seeks feedback on changes to consumer credit regulation

The government is calling on the public for feedback on proposed changes to New Zealand’s consumer credit regulation.

In December 2017, the Minister of Commerce and Consumer Affairs requested a review of the Credit Contracts and Consumer Finance Act (CCCFA) 2003. The goal was to assess whether borrowers are better informed, whether predatory and irresponsible lending has reduced, and whether further steps are required to ensure responsible lending, particularly for vulnerable consumers.

A discussion paper for public consultation was released by the Ministry of Business Innovation and Employment (MBIE) on June 27. It sets out findings from the review to date, based on desk-based research and interviews with stakeholders. While there have been some positive results from the 2015 reforms, it is clear that serious issues remain.

In a release, the Insurance and Financial Services Ombudsman (IFSO) is also encouraging Kiwis to make a submission. MBIE is asking for feedback on:

  • issues around consumer credit, and;
  • the benefits and costs of potential legislative changes.

Submissions close August 01, 5 pm.

 

Related stories:
FSF supports government efforts to “stamp out irresponsible lending”
Study reveals legislation breaches and non-compliance amongst lenders

 

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