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

 


Consumer credit law changes introduced to Parliament

Hon Craig Foss
Minister of Consumer Affairs

18 April 2013

Consumer credit law changes introduced to Parliament

Consumer Affairs Minister Craig Foss today announced the introduction of a Bill making wide-ranging changes to consumer credit and repossession laws.

“The Consumer Credit and Financial Services Law Reform Bill is the biggest overhaul of consumer credit law in a decade,” says Mr Foss.

“The changes introduced today represent a crackdown on unscrupulous lenders who prey on desperate people and leave them and their families trapped in a spiral of debt.

“The changes will usher in an era where lenders must act responsibly, where consumers have the information they need and where there are significant consequences for those who breach the law.

“Rewriting the rules for consumer lending was one of the Government’s pre-election promises and forms an important part of the Business Growth Agenda, which aims to boost confidence in our financial markets. I’m pleased today to say the Government is delivering on those promises,” says Mr Foss.

The Bill introduces a wide range of changes, including:
• Lenders will have to take responsibility for the likely effect of the credit they provide
• Lenders will only be able to lend money when the loan meets the borrower’s requirements and objectives, and the payments required won’t cause substantial hardship for the borrower
• Lenders may be banned from the industry if they don’t lend responsibly
• A new Code of Responsible Lending will be introduced
• There will be better controls against misleading, deceptive or confusing advertising
• Consumer goods cannot be repossessed unless they are specifically identified in the credit contract
• Licensing of repossession agents and employees.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On Anne Tolley’s
Callous Folly

Years ago, I remember someone in the Heath Ministry telling me off the record that regulatory oversight in this country largely consisted in ‘waiting for something to turn green or fall off somebody’ before the authorities would swing into action...

Last week’s conflict between Social Development Minister Anne Tolley and District Court judge Carolyn Henwood illustrated quite a few of the flaws in the system. More>>

 

Members’ Bills: Greens' Domestic Violence And Loans Bills Pulled From Ballot

Jan Logie’s Domestic Violence-Victims' Protection Bill introduces workplace protections for victims of domestic violence, including allowing victims to request paid domestic violence leave for up to 10 days... Gareth Hughes’ Bill allows Kiwis with student loans to defer their student loan repayments into a first home savings scheme. More>>

ALSO:

IPCA: Police Did Not 'Deliberately' Use Pepper Spray On 10-Year-Old

"When spraying the man, the officer did not properly consider the necessity of using pepper spray in a confined space, the likelihood that it would affect the other innocent passengers or the fact that he was using a more powerful spray." More>>

ALSO:

Donor Bill Passes: Full Income Compensation For Live Organ Donors

Unanimous cross-party support for the Compensation for Live Organ Donors Bill represents a critical step in reducing the burgeoning waiting list for kidney donations, according to Kidney Health New Zealand chief executive Max Reid. More>>

ALSO:

Earthquake Response: Emergency Legislation Prepared

Three new Bills have been drafted in the wake of the magnitude 7.8 earthquake on November 14 to ensure the government can enable affected communities to respond quickly and efficiently. More>>

ALSO:

Housing MPs: New Building(s) For Parliament

A new building will be erected on Parliament grounds to house Members of Parliament and their staff who currently work in leased accommodation in Bowen House. The plan has cross-Party support, apart from NZ First, said Parliament’s Speaker, Rt Hon David Carter. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news