New Zealand Government - Consumer Affairs Minister
"Rewriting our consumer credit laws was a giant leap forward for lending practices in
"Lenders must now operate with skill, care and diligence in all dealings with a borrower throughout the life of a credit contract.
"Adopting a Responsible Lending Code will increase protection for borrowers without imposing unnecessary compliance costs on lenders who already have good systems in place."
All lenders must comply with the lender responsibility principles outlined in the Act, including:
- helping a borrower reach an informed decision about whether to agree to a loan
- making reasonable enquiries to ensure the borrower can make repayments without suffering substantial hardship
- treating borrowers and their property reasonably, with respect and in an ethical manner
- ensuring the terms of the agreement and the exercise of powers by the lender are not oppressive
- meeting all legal obligations to the borrower
"I look forward to feedback on what guidance should be included in the Code to establish market best practice,"
To make a submission visit: http://www.consumeraffairs.govt.nz/legislation-policy/changes-to-credit-laws
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