Credit contracts review discussion paper released
Commerce and Consumer Affairs Minister Kris Faafoi has released a discussion paper outlining findings from the review of the Credit Contracts and Consumer Finance Act.
Possible measures identified in the paper to protect consumers include caps on interest rates and fees, increased licensing or registration for lenders, strengthening enforcement and penalties for irresponsible lending and introducing more prescriptive requirements for affordability assessments and advertising.
Continued predatory behaviour by mobile traders is also considered, as is extension of the Act to cover credit not currently covered including after pay options.
Mr Faafoi says that the findings of the review confirmed what he has been hearing from budget services and vulnerable consumers across New Zealand.
“Clearly the 2015 amendments to the Act did not go far enough and it is time now to finish the job and protect the most vulnerable consumers," he says.
Submissions on the discussion paper close at 5pm on Wednesday, 1 August 2018.
Last updated on the 16th September 2019