More changes to consumer lending rules coming
Minister of Commerce and Consumer Affairs, Hon Dr David Clark, has announced further changes to the Credit Contracts and Consumer Finance (CCCF) Regulations.
These changes are intended to address some of the more technical aspects of the Credit CCCF legislation to assist banks and lenders, including:
- narrowing the expenses considered by lenders;
- relaxing the assumptions that lenders were required to make about credit cards and buy-now pay-later schemes; and
- helping make debt refinancing or debt consolidation more accessible if appropriate for borrowers.
The changes will be implemented by March 2023. The Ministry of Business Innovation and Employment will consult on the finer details of the changes before then.
This follows changes to the CCCF Regulations and Responsible Lending Code last month and is intended to provide further clarity for lenders and curb any unintended consequences caused by changes to the CCCF Act in December 2021, which have been blamed for overly restricting new lending.
For assistance with this or to discuss how these further changes to the Credit Contracts and Consumer Finance (CCCF) Regulations may affect you, please contact a member of our Banking and Finance team.
Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.