Government seeks feedback on changes to consumer credit regulation

The government is calling on the public for feedback to 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 been 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) also encouraged Kiwis to make a submission. The MBIE is asking for feedback on:

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

Submissions close August 01, 5pm.

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