Client Newsletter

NZ MBIE looking for feedback on CCCFA

We recently received the below from the Ministry of Business, Innovation and Employment (MBIE). They are looking for input into a review of a specific section of the CCCFA.

The issue relates to the Disclosure requirements in the CCCFA and specifically the unenforceability of Credit Contracts where errors in disclosure have been made.

The New Zealand Bankers Association (NZBA) have expressed that their members’ concerns that creditors must refund costs of borrowing in all situations, even if they’ve corrected non-disclosure or there is no material harm to the borrower. This is an issue because “instances of non-disclosure or wrong disclosure are unavoidable, simply due to the volume of lending and extensive disclosure obligations now imposed”.

The Discussion Paper looks at different options around the issue and seeks your feedback and opinions on them. It also provides details on how to make a submission and the deadline for doing so – which is 28th November.

Click here for more information.