| Id: | 16943 |
| Product: | finPOWER Connect |
| Type: | NEW |
| Version: | 3.03.00 |
| Opened: | 24/04/2020 |
| Closed: | 30/04/2020 |
| Released: | 01/05/2020 |
| Job: | J024158 |
New Zealand High-Cost Consumer Credit Contracts; Make commencement date definable
The Commencement date for High-Cost Consumer Credit Contracts can now be defined under Global Settings, Account group, General page. This allows for some additional flexibility.
The New Zealand Government introduced and passed legislation on the 30 April to amend the commencement date of some parts of the High-Cost Consumer Credit Contracts Act - effective from 1 May 2020.
- Commencement dates for High-Cost Consumer Credit Contracts.
- General
- This defines the date that the new High-Cost Loan clauses in the Amendment Act come into force.
- Rate of Charge
- This defines the date that the "Rate of Charge" daily interest rate cap comes into force.
NOTE: This feature will be removed in the future.
Comparison Rate
The Comparison Rate Type for a High-Cost Loan Account Type should still be set to "New Zealand Rate of Charge" and 0.8%.
A warning is given if the Loan's opening date is on/ after "Rate of Charge" commencement date defined under Global Settings and "Rate of Charge" comparison rate is not used.
The new High-Cost Loan block, in the Loan Contract Document template, will only show the Rate of Charge paragraph if the Comparison Rate is "New Zealand Rate of Charge" and the Loan is opened on or after the Rate of Charge commencement date.
The following standard Document template has been updated:
- Loan_Contract_NZCCCFA.xml
- Version: 1.12 (25/04/2020)