From today, as all consumer lenders in New Zealand are likely aware, amendments to the following are now in force:
- the Credit Contracts and Consumer Finance Act 2003 (CCCFA);
- the Credit Contracts and Consumer Finance Regulations 2004 (Regulations); and
- the Responsible Lending Code (except for chapter 12, which will be coming into force on 1 February 2022).
These amendments were previously scheduled to come into force on 1 October 2021 but were delayed due to the Auckland Delta outbreak (you can read more about this here).
We know lenders have been working extremely hard to update their systems and train their employees over the past year to meet their new obligations under the CCCFA and the Regulations. Today will likely come as a relief to all those involved in various projects across a lender’s business, and we commend you all for your efforts.
It remains to be seen the impact on credit markets of the increased prescription on lender processes.
The new provisions in force
As a reminder the new provisions in force under the CCCFA and Regulations from today include:
- The duty to provide disclosure about debt collection;
- The directors and senior managers due diligence obligation;
- The suitability and affordability regulations; and
- The duty to provide an annual return.
You can read about some of these new provisions at the following links:
Get in touch
Do get in touch if you have any questions about the new provisions or the amendments more generally, our experts will be happy to help.
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