Exposure draft of Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations 2022

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Submissions due: 24 February 2023, 5pm

We are seeking feedback on an exposure draft of the Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations 2022 (the Draft Regulations).

The Draft Regulations give effect to the Government’s decision to apply the Credit Contracts and Consumer Finance Act 2003 (CCCFA) to buy now pay later (BNPL) credit. The Draft Regulations aim to protect consumers from financial hardship, while enabling continued access to low-cost credit.

To achieve this, the Government has decided that:

  • The CCCFA will apply to BNPL. This means that BNPL will be regulated as a ‘consumer credit contract’ like credit cards or personal loans, and most of the requirements of the CCCFA will apply.
  • Smaller amounts of BNPL credit below a dollar threshold will be exempt from the CCCFA requirement to assess affordability. For BNPL credit above the threshold, BNPL lenders will be required to assess affordability.
  • For BNPL credit below the threshold:
    • BNPL lenders must carry out comprehensive credit checks with a credit reporting agency and provide information back to credit reporting agencies
  • BNPL lenders must disclose the repayment schedule and late fees when each purchase is made using BNPL, not just when the consumer credit contract is first entered into.

We are seeking feedback on:

  • the impact of setting the threshold for BNPL lenders to assess affordability at $600
  • 2 options for these affordability assessments:
    • in accordance with the Credit Contracts and Consumer Finance Regulations 2004
    • in accordance with the CCCFA’s principles-based requirement, but not the process prescribed in the regulations.
  • any other issues relating to the drafting or workability of the Draft Regulations.

Your feedback will be used to improve the Draft Regulations.

To provide a submission please complete the Submission Template.

For further information and relevant policy documents related to BNPL, please visit:

Buy Now Pay Later

How to make a submission

The Ministry of Business, Innovation and Employment (MBIE) seeks written submissions on the issues raised in this document by 5pm on 24 February 2023.

Your submission may respond to any or all of these issues. Where possible, please include evidence to support your views, for example references to independent research, facts and figures, or relevant examples.

Please use the submission template provided. This will help us to collate submissions and ensure that your views are fully considered. Please also include your name and (if applicable) the name of your organisation in your submission.
Please include your contact details in the cover letter or e-mail accompanying your submission.

You can make your submission by:
• sending your submission as a Microsoft Word document to consumer@mbie.govt.nz.
• mailing your submission to:
Consumer Policy
Building, Resources and Markets
Ministry of Business, Innovation & Employment
PO Box 1473
Wellington 6140
New Zealand

Please direct any questions that you have in relation to the submissions process to

Use of information

The information provided in submissions will be used to inform the final drafting of the Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations 2022. We may
contact submitters directly if we require clarification of any matters in submissions.

Release of information

MBIE intends to upload PDF copies of submissions received to MBIE’s website at www.mbie.govt.nz.

MBIE will consider you to have consented to uploading by making a submission, unless you clearly
specify otherwise in your submission.

If your submission contains any information that is confidential or you otherwise wish us not to
publish, please:
• indicate this on the front of the submission, with any confidential information clearly marked
within the text
• provide a separate version excluding the relevant information for publication on our website.

Submissions remain subject to request under the Official Information Act 1982. Please set out clearly in the cover letter or e-mail accompanying your submission if you have any objection to the release
of any information in the submission, and in particular, which parts you consider should be withheld, together with the reasons for withholding the information. MBIE will take such objections into account and will consult with submitters when responding to requests under the Official Information
Act 1982.

Private information

The Privacy Act 1993 establishes certain principles with respect to the collection, use and disclosure of information about individuals by various agencies, including MBIE. Any personal information you supply to MBIE in the course of making a submission will only be used for the purpose of assisting in
the development of policy advice in relation to this review. Please clearly indicate in the cover letter or e-mail accompanying your submission if you do not wish your name, or any other personal information, to be included in any summary of submissions that MBIE may publish.