Review of the Credit Contracts and Consumer Finance Act
In December 2017 the Minister of Commerce and Consumer Affairs instructed MBIE to conduct a review of the 2015 amendments to the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
The targeted review will 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 review will also identify potential improvements to reduce irresponsible and predatory lending, and resulting consumer harms, particularly for vulnerable consumers.
In scope of the review are the activities of debt collection agencies, regarding recovery of debts incurred under credit and consumer finance contracts.
Expected timeframe for the review
Providing input into the review
MBIE will make a discussion document available for public comment in mid 2018.
Summary of legislative reforms under review
The following reforms came into force in 2015:
• Advertising, and requirement to publish costs of borrowing
Penalties and enforcement
• New, increased penalties
• New repossession requirements
Other lender obligations
• Improved disclosure requirements