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

Timeframe for the review

Providing input into the review

MBIE will make a discussion document available for public comment in mid 2018.

Please subscribe if you’d like to be alerted when the discussion paper is published.

Summary of legislative reforms under review

The following reforms came into force in 2015:

Thematic area


Responsible lending

• Advertising, and requirement to publish costs of borrowing
• 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
• Responsible lending requirements, including around oppression

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
• Unforeseen hardship obligations