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

 


More protection from loan sharks

More protection from loan sharks

A Bill making the biggest changes to consumer credit legislation in more than a decade has passed its third reading in Parliament, Consumer Affairs Minister Craig Foss says.

The Credit Contracts and Financial Services Law Reform Bill protects the interests of borrowers and requires lenders to act responsibly.

“Time is fast running out for predatory lenders who try to exploit our communities. This Bill reflects the National Government’s commitment to protecting vulnerable New Zealanders from spiralling debt, without imposing unnecessary compliance costs on responsible lenders,” Mr Foss says.

“Rewriting the rules for consumer lending is an important part of the Government’s Business Growth Agenda, which aims to boost confidence and trust in our financial markets.”

The Bill amends the Credit Contracts and Consumer Finance Act, the Financial Service Providers (Registration and Dispute Resolution) Act, the Private Security Personnel and Private Investigators Act and the Personal Property Securities Act.

It also repeals the Credit (Repossession) Act and incorporates its content into an expanded Credit Contracts and Consumer Finance Act.

Key changes to legislation include:

Requiring responsible lending in the consumer credit market - lenders must act with skill, care and diligence in all dealings with a borrower throughout the life of a consumer credit contract.
Introducing a Responsible Lending Code to provide guidance on how a responsible lender should behave.
Requiring more timely and complete disclosure of loan terms and extending the ‘cooling off’ period for borrowers to cancel their loan.
Introducing a standing disclosure regime where lenders must provide free of charge their standard form contract terms and costs of borrowing.
Preventing goods from being repossessed unless they are specifically identified in the credit contract and limiting some essential household items from repossession altogether.
· Licensing of repossession agents and employees.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City between Paterson Street and Buckle Street/Taranaki Street...

Parties specified under Section 149Q(3) of the RMA now have 20 working days to make comments on minor or technical aspects of the report. More>>

 

Parliament Today:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Gordon Campbell: On The Non-Apology To Tania Billingsley

The refusal by Prime Minister John Key to issue a personal apology to Tania Billingsley has been accompanied by an array of excuses... Yesterday though, Key’s choice of words indicated that an apology was the last thing on his mind. More>>

ALSO:

Conventions: Winston Peters On The Nation

Winston Peters opens door to standing in East Coast Bays electorate, says it's an "exciting point" and he's thinking about it. "I’ve had a whole lot of people writing to me and calling up and saying ‘why don’t you have a go in East Coast Bays’." More>>

ALSO:

Waitangi Tribunal: Report On The MV Rena

In its interim report, the Waitangi Tribunal has found that the Crown’s conduct in response to the grounding of the MV Rena on Otaiti (Astrolabe) reef breached the principles of the Treaty of Waitangi. More>>

ALSO:

Gaza: Wellington Protest For Palestine Calls For End To Bombing

Around 300 people gathered outside the Israeli Embassy in Wellington on Friday to protest Israel’s occupation of Palestine. More>>

ALSO:

Gordon Campbell: On The Failure To Prosecute The GCSB

So one hand of the state – the Independent Police Conduct Authority – has now washed the hands of its brother agencies, and declared that all hands are clean. Case closed. More>>

ALSO:

Illegal Search: Police Behaviour 'Reminiscent Of Tūhoe Raids'

"Māori will lose further trust and confidence in the New Zealand Police and the Independent Police Conduct Authority (IPCA) if the recent incident in Stratford is not adequately addressed. This behaviour would not occur in Epsom or Khandallah so why should police think that such behaviour was acceptable in Stratford," says Chris McKenzie. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news