Banks Welcome Removal Of Consumer Lending Regulations

The banking industry welcomes the government’s removal of affordability regulations under the Credit Contracts and Consumer Finance Act, and update of the Responsible Lending Code, to help improve access to lending.

New Zealand Banking Association chief executive Roger Beaumont says: “We are pleased to see the removal of overly prescriptive affordability assessments. This will help fix the one-size-fits-all approach that treated all types of lending and borrowers the same.

“Banks are responsible lenders and take their obligations under the law and to their customers seriously. The change still means that consumers are protected, and lenders need to be responsible.

“Removing the overly prescriptive regulations and updating the Responsible Lending Code will help bring back flexibility and discretion for banks to help customers. This is especially the case for national emergency situations or for customers in need.

“This is a good first step in the process of amending the CCCFA. Banks look forward to engaging with the government in the next phase.”

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