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MBIE issues CCCFA updates

Home Insights MBIE issues CCCFA updates

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Contributed by: Emmeline Rushbrook

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Published on: August 11, 2020

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The Ministry of Business Innovation and Employment (MBIE) last week issued a number of updates concerning the Credit Contracts and Consumer Finance Act 2003 (CCCFA). These were specifically regarding:

  • the timing of the CCCFA amendment regulations; and
  • a short consultation underway regarding the Addendum to the Responsible Lending Code: COVID-19 in which submissions are due by 6pm on Wednesday 12 August.

Regulation timings

MBIE has said that the drafting of the CCCFA amendment regulations has been split into two tranches, with the first tranche to be made before the election and the second tranche to follow later this year. MBIE has said that both tranches will come into force on 1 October 2021.
 
The first tranche of regulations will relate to:

  • responsible advertising standards for lenders
  • the information to be disclosed at the start of debt collection
  • disclosure requirements when a contract has been varied
  • amendments to existing regulations relating to disclosure of information about dispute resolution services and financial mentoring services

The second tranche of regulations will relate to affordability and suitability assessments.

Addendum to the Responsible Lending Code

In light of continuing economic impacts of COVID-19, MBIE is consulting on whether to extend the term of the Addendum to the Responsible Lending Code: COVID-19 beyond 30 November 2020. Submissions are due by 6pm this Wednesday 12 August.
 
The Addendum can be found here.
 
The consultation page can be found here.


This article is intended only to provide a summary of the subject covered. It does not purport to be comprehensive or to provide legal advice. No person should act in reliance on any statement contained in this publication without first obtaining specific professional advice. If you require any advice or further information on the subject matter of this newsletter, please contact the partner/solicitor in the firm who normally advises you, or alternatively contact one of the partners listed below.

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