Exposure draft of Credit Contracts and Consumer Finance Amendment Regulations (No 2) 2022 and updated Responsible Lending Code

The Draft Regulations give effect to further decisions by Cabinet to adjust the Credit Contract and Consumer Finance Regulations 2004 and the Responsible Lending Code. These decisions seek to address the unintended impacts of the December 2021 changes to the Credit Contracts and Consumer Finance Act and improve safe access to credit for Kiwis.

To address the unintended impacts of the changes, Cabinet has decided to:

• narrow the expenses considered by lenders to exclude discretionary expenses more explicitly
• provide more flexibility for lenders about how certain repayments are calculated
• expand exceptions from a full income and expense assessment for refinancing of existing credit contracts.

We seek feedback on the draft Regulations and the Code, particularly whether the changes are workable for lenders and borrowers and achieve the policy intent.  Your feedback will be used to improve the Regulations and Code.

For further information and relevant policy documents related to the 2022 review of consumer credit law, please visit:

Initial implementation review of the 2021 CCCFA changes