Review of Consumer Credit law

Credit Contracts and Consumer Finance Act 2003 (CCCFA)

Tell us your views

We’ve heard that Kiwis are facing problems when borrowing and lending.

[image] Tell us your views

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  • Have you experienced these problems?
  • Are these issues serious enough to warrant a change in the law?

Tell us what you think about these issues

Here are some ideas we’ve heard for fixing these problems.

[image] Fixing problems

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  • What are the pros and cons of these ideas?
  • Are there other solutions that would work better?

Tell us what you think about these options:

Feedback is due by 5 pm on Wednesday 1 August 2018.

Have your say

For more detailed information and to make a full submission, view the consultation.

Supporting research

MBIE established a baseline of lender behaviour before the reforms came into force in 2015, to allow for future evaluations of the effectiveness of the law changes. The desk-based study of lenders for 2017/2018 provides comparative analysis on the lender landscape and common advertising and disclosure practices before, and two years, after the 2015 reforms came into force.

It provides data to support policy analysis around questions like:

  • [image] Supporting researchHow clear and responsible is lender advertising?
  • What are lenders’ fees and interest rates, as disclosed on their websites?
  • What kinds of content and themes are present in lender advertising?
  • What is the number (and turnover) of lenders since 2015?
  • What proportion of lenders are complying with registration and disputes resolution registration requirements?

Expected timeframe for the review

[image] Expected timeframe


In December 2017, the Minister of Commerce and Consumer Affairs instructed MBIE to conduct a review of the 2015 amendments to the CCFA 2003.

The purpose of the review is to assess progress to date of the 2015 reforms – in particular whether there is:

  • better informed decision making for consumers
  • reduced predatory and irresponsible lending
  • increased lender compliance with legal requirements.

The following reforms came into force in 2015:

Thematic area


Responsible lending

  • Requirement to be a responsible lender, including in advertising and all dealings with borrowers
  • Obligations to:
  • ensure borrower can repay loan without substantial hardship
  • ensure credit will meet borrower requirements
  • assist with informed decisions
  • treat borrowers, guarantors and their property reasonably and ethically

Penalties and enforcement

  • New, increased penalties
  • Strengthened incentives to register on the Financial Service Providers Register


  • New repossession requirements

Other lender obligations

  • Improved disclosure requirements
  • Extended cooling-off period
  • Minimum repayment warnings on credit card statements
  • Further unforeseen hardship obligations

These changes will be included in a Credit Contracts and Consumer Finance Amendment Bill, which is expected to result from the current review of consumer credit regulation and contain a range of changes to the CCCFA. The Minister has said that he expects to introduce this Bill at the end of this year, or early next year.

You can read background information about the approval to release the discussion paper here:

Cabinet paper, June 2018: Approval to release discussion paper “Review of Consumer Credit Regulation”, and amend section 99(1A) of the Credit Contracts and Consumer Finance Act 2003” [PDF 495KB]