Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Greater protection for consumers in new law

7 October 2003
Media Statement

Greater protection for consumers in new legislation


The Credit Contracts and Consumer Finance Bill passed by Parliament today replaces outdated credit law with strong, innovative legislation to better protect New Zealand consumers, says Consumer Affairs Minister Judith Tizard.

“This legislation provides greater protection for consumers in relation to credit contracts, consumer leases and buy-back transactions,” said Judith Tizard.

“Buy-back schemes are a particular focus of the legislation. This government is committed to stamping out these schemes which have resulted in many innocent homeowners losing their homes through the actions of unscrupulous creditors.”

Judith Tizard said tough penalties and new disclosure requirements will create a disincentive for operators to continue running these schemes. These measures will protect consumers against further losses from buy-back schemes as well as providing remedies for those already involved in such schemes.

“This legislation improves the information disclosure requirements for all consumer credit transactions so that consumers will receive meaningful information about the cost and terms of credit. This will enable consumers to make informed decisions when entering into and during the course of, financial transactions.

“Fair and flexible rules relating to fees and interest charges will protect consumers from unreasonable charges.

“Creditors who flout the law and exploit consumers face increased penalties and the prospect of rigorous enforcement. The new Act empowers the Commerce Commission to take action in response to breaches of the law.”

Judith Tizard said as well as benefiting consumers, the legislation also meets the needs of creditors by simplifying the law and some administrative requirements, as well as reducing compliance costs for providers and borrowers of commercial credit.

“This is good law for consumers and creditors. It is the final plank in a raft of consumer protection legislation that I have steered through the House this year. I am confident that it will improve consumer protection and enhance the consumer finance market and I’m proud to be part of a Labour-Progressive Government showing leadership in this area.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election