Today Commerce and Consumer Affairs Minister Jacqui Dean issued updates to the fees section of the Responsible Lending Code.
“The Code gives lenders guidance on how to implement the new obligations set out in the Credit Contracts and Consumer Finance Act (CCCFA),” Ms Dean says.
“When the Code was introduced in 2015, the courts were considering a case relating to credit contract fees. Because of this, the fees section of the Code could not deal with matters at the centre of the decision. The changes announced today reflect key decisions on credit fees made by the Supreme Court.
“The Code aims to increase protection for people taking out loans without imposing unnecessary compliance costs on lenders who already have good systems in place. It has an important role in providing lenders with guidance on how to comply with their obligations,” Ms Dean says.
The updated Code will come into effect on 6 July 2017.
For more information and to access the updated Code see https://www.consumerprotection.govt.nz/consumer-law-and-your-rights/policies/responsible-lending-code/