Effective as of today – the new CCCFA regime

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As of today, as every consumer lender in New Zealand is likely aware, the following changes are now in effect:

  • the 2003 Law on Credit Agreements and Consumer Finance (CCCFA);
  • the 2004 Regulations on Credit Agreements and Consumer Finance (Regulations); and
  • the Responsible Loan Code (with the exception of chapter 12, which will come into force on February 1, 2022).

These changes were previously scheduled to go into effect on October 1, 2021, but were delayed due to the Auckland Delta outbreak (you can read more about this here).

We know that lenders have worked extremely hard to update their systems and train their employees over the past year to meet their new obligations under the LCCAF and the Regulations. Today will probably be a relief for everyone involved in various projects in a lender’s business, and we congratulate you all on your efforts.

The impact on credit markets of increased prescription on lender processes remains to be seen.

The new provisions in force

As a reminder, the new provisions in force under the CCCFA and the Regulations as of today include:

  • The obligation to provide information on debt collection;
  • The due diligence obligation of directors and senior executives;
  • Adequacy and affordability regulations; and
  • The obligation to provide an annual report.

You can read some of these new provisions at the following links: