HON CRAIG FOSS
Minister of Consumer Affairs
17 March 2014 Media Statement
Loan shark crack-down continues
Commerce Minister Craig Foss has welcomed the Commerce Select Committee report on a Bill that will crack-down on
unscrupulous lenders who leave borrowers and their families in a spiral of uncontrolled debt.
“Proposed changes under the Credit Contracts and Financial Services Reform Bill will help to increase confidence in the
role consumer credit plays in our financial markets, which is a major component of the Government’s Business Growth
Agenda,” says Mr Foss.
“We are improving protections for borrowers by promoting responsible lending practices without imposing unnecessary
compliance costs on lenders who already have good systems in place.
“We are targeting unscrupulous lenders by ensuring consumers are given the information they need to make informed
decisions and boosting enforcement powers and penalties to crackdown on those lenders who breach the law. I would also
like to take this opportunity to thank the Committee for its contribution towards the development of this important
Bill,” says Mr Foss.
The Select Committee’s changes include:
• Clarifying the status of the Responsible Lending Code that will set out the best practice guidance for responsible
lending.
• Positive improvements to the credit repossession rules in the Bill that will increase the protection for consumers
from unfair repossession practice.
• Amending the continuous disclosure regime to require a minimum repayment warning on all credit card statements.
• Significantly increasing penalties for creditors that breach credit laws to maximum fines of $200,000 for individuals
and $600,000 for companies.
For more information, visit www.parliament.nz/en-nz/pb/legislation/bills/00DBHOH_BILL12096_1/credit-contracts-and-financial-services-law-reform-bill
ENDS