Responsible Lending Code welcomed

The New Zealand Bankers’ Association today welcomed the government’s release of the Responsible Lending Code.

The Code provides guidance on how responsible lenders should behave and supports consumer credit law reforms last year that aimed to crack down on loan sharks.

“We support the Code because it will help target unscrupulous lenders and provide greater protection for vulnerable people,” said New Zealand Bankers’ Association chief executive Kirk Hope.

“Along with other responsible lenders and consumer groups, we have engaged with government on the Code’s development to help find a balance between protecting vulnerable consumers and making sure responsible lenders do not incur substantial additional compliance costs.

“As ever, proper enforcement will play a crucial role in the Code’s success. Regulators will need to be vigilant to ensure the Code, and the law behind it, meets its stated aims of cracking down on loan sharks and other unscrupulous lenders.

“We congratulate Commerce and Consumer Affairs Minister Paul Goldsmith on finalising the Code,” Hope said.