Debtfix Supports Common Sense Returning To CCCFA But Stands By Protecting New Zealand’s Safe Lending Laws

Christine Liggins, co-founder of Debtfix, is pleased to hear Consumer Affairs Minister David Clark announce common sense changes to the CCCFA amendments introduced in December 2021.

“Since December creditors have said that a client can’t be sold a loan or mortgage because they have too many coffees or takeaways. However, common sense would indicate that future spending would not include these because we commonly change our spending habits when a mortgage becomes the priority.”

The proposed changes will allow for a more balanced review of a borrower’s suitability to buy a loan or mortgage. Fair enough.

However, if a Kiwi can’t afford a loan, then they can’t afford a loan and should be referred to a financial mentor for further assistance.

The Debtfix Crew stands by its open letter to Minister Clark and MPs Mr Bayly, Mr Smith, Mr Menéndez March and Ms Ngarewa-Packer.

Along with other organisations that deal with the fallout of whanau being sold unaffordable loans Debtfix backs New Zealand’s safe lending laws that bring financial wellbeing to all communities.

"The removal of the savings provision is disappointing as that would create a buffer for emergencies and as proven when the lockdowns hit, the lack of this buffer can quickly make stable situations unstable," says Liggins.

"The current increases at the supermarket and at the petrol pump also highlight the need for extra savings buffers, not to mention unexpected emergency car repairs, accidents and sickness.

"Without back up savings, these life events can make previously manageable debt unaffordable."

Liggins would expect lenders to review the full situation of the borrower and act responsibly.

"A full and realistic affordability assessment is still the key to responsible lending."

https://www.fincap.org.nz/wp-content/uploads/2022/03/open-letter-for-website.pdf

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