The New Zealand Bankers’ Association has welcomed the third reading of the Credit Contracts and Financial Services Law Reform Bill in Parliament last night.
The law change aims to crack down on loan sharks and requires lenders to act with skill, care and diligence in all dealings with a borrower throughout the life of a consumer credit contract. It will also introduce a Responsible Lending Code to provide guidance on how a responsible lender should behave.
“Banks are responsible lenders. We strongly support measures that target unscrupulous lenders and provide greater protection for vulnerable people. We’re keen to see all lenders held to the same standards we already observe,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“We look forward to working with government to help get the Responsible Lending Code right. It needs to strike a balance between protecting vulnerable consumers and ensuring legitimate and well-regulated lenders do not incur substantial additional compliance costs.
“The law change and the new Code present an opportunity to get this balance right.
“We congratulate Consumer Affairs Minister Craig Foss on getting the Bill through. It represents the biggest change in consumer credit law in more than a decade,” Hope said.