Credit Contracts Legislation Amendment Bill

  • enacted

Hon Kris Faafoi

Credit Contracts Legislation Amendment Bill

Government Bill

131—3

Contents

Key
1Title
2Commencement
3Amendments to Credit Contracts and Consumer Finance Act 2003
4Section 3 amended (Purposes)
5Section 4 amended (Overview)
6Section 5 amended (Interpretation)
7New section 8C inserted (Status of examples)
8CStatus of examples
8Section 9A amended (Outline of Part)
9Section 9B amended (Interpretation)
10Section 9C amended (Lender responsibility principles)
11New section 9CA inserted (Records about inquiries made)
9CARecords about inquiries made
12Section 9F amended (Content of Responsible Lending Code)
12ASection 9J amended (Publication of standard form contract terms)
13Section 11 amended (Meaning of consumer credit contract)
13ANew section 16A inserted (Mobile trader credit sales treated as consumer credit contract)
16AMobile trader credit sales treated as consumer credit contract
15Section 22 amended (Disclosure of agreed changes)
16Section 23 amended (Disclosure of changes following exercise of power)
17Section 26 amended (Disclosure of changes to guarantors)
17ASection 26A amended (Disclosure of transfer of rights of creditor under consumer credit contract)
17BNew section 26B inserted (Disclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints)
26BDisclosure about dispute resolution schemes and financial mentoring services: hardship applications, arrears, credit declined, and complaints
18Section 29 amended (Right of cancellation does not apply in certain situations)
19Section 32 amended (Disclosure standards)
20Section 35 amended (How disclosure is made)
21New section 41A inserted (Records and reviews about how fees calculated)
41ARecords and reviews about how fees calculated
22New subpart 6A of Part 2 inserted
45AAAPurpose of this subpart
45AABOutline of this subpart
45AACMeaning of high-cost consumer credit contract
45AADPower to increase interest rate that defines high-cost consumer credit contract
45ACosts of borrowing must not exceed loan advance
45BCertain high-cost consumer credit contracts with other creditors prohibited
45CHigh-cost consumer credit contracts with certain repeat debtors prohibited
45DRate cap
45ECompound interest prohibited
45FDefault fees
45GProhibition on avoidance
45HReview of subpart
22ASection 57A amended (Obligations of creditor in relation to application)
23New subpart 9 of Part 2 inserted
59BDuty of directors and senior managers of creditors
23ASection 83J amended (Effect of debtor’s complaint or application on grounds of unforeseen hardship on creditor’s rights to enforce credit contract)
23BSection 83ZH replaced (Extinguishment of creditor’s security interest and subordinate security interests on sale)
83ZHExtinguishment of creditor’s security interest and subordinate security interests on sale
24Section 88 amended (Creditors, creditors’ agents, lessors, transferees, and buy-back promoters liable for statutory damages)
25Section 89 amended (Amount of statutory damages)
26Section 92 amended (Guidelines for reducing statutory damages)
27Section 93 amended (Court’s general power to make orders)
28Section 94 amended (Court orders)
29New sections 95A and 95B inserted
95ACourt may reduce effect of failure to make disclosure
95BGuidelines for reducing effect of failure to make disclosure
30Section 96 amended (Injunctions)
31New sections 98A and 98B and cross-heading inserted
98ACompliance orders
98BOrder to disclose information or publish advertisement
31ASection 100 amended (Enforcement of guarantee prohibited)
32Section 102A amended (Infringement offences)
33Section 103 amended (Other offences)
34Section 106 amended (Reasonable mistake defence)
35Section 107 amended (Relevance of compliance programme)
36New subpart 5A of Part 4 inserted
107APecuniary penalties
107BProceedings for pecuniary penalties
107CRelationship between pecuniary penalties and criminal liability
107DRestriction on indemnities
107ERestriction on insurance
37Section 108 amended (Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters)
38Section 111 amended (Role and functions of Commission under this Act)
39Section 113 amended (Application of Commerce Act 1986)
39ANew section 116AAA inserted (Requirement for annual return)
116AAARequirement for annual return
40New subpart 8 of Part 4 inserted
116ADirectors and senior managers may also be liable for statutory damages or compensation
40ASection 124 amended (Guidelines for reopening credit contracts, consumer leases, and buy-back transactions)
41New Part 5A inserted
131AInterpretation for this Part
131BWhen person needs to be certified
131CExemptions from need for certification
131DProhibitions on holding out that person is certified
131ECommission may issue certification
131FApplication for certification
131GWhen certification must be issued
131HProcedural requirements
131INotice of decision
131JCommission must send certification details to Registrar
131KConditions of certification
131LWhen Commission may impose conditions
131MCertified person may apply for variation of conditions
131NProcedure for variation of conditions
131ODuration of certification
131PWhen Commission may suspend or cancel certification
131QProcedural requirements on suspension or cancellation of certification
131RDuty to notify changes
131SAppeals against certification decisions
131TFees, changes, and costs in connection with this subpart
42New section 132A inserted (Disclosure about debt collection)
132ADisclosure about debt collection
42ANew sections 137A to 137C and cross-heading inserted
137AClass declarations about credit contracts and consumer credit contracts
137BDeclarations about particular arrangements or facilities
137CGeneral provisions about all declarations
43Section 138 amended (Regulations)
44Schedule 1AA amended
45Schedule 1 amended
46Amendments to Fair Trading Act 1986
47Section 36B amended (Meaning of layby sale agreement)
48Section 36C amended (Disclosure requirements relating to layby sale agreement)
49Amendments to Financial Service Providers (Registration and Dispute Resolution) Act 2008
50Section 4 amended (Interpretation)
51Section 5 amended (Meaning of financial service)
52Section 13 amended (Qualifications for registration as financial service provider)
53Section 18 amended (Deregistration of financial service provider)
54New section 23 and cross-heading inserted
23Information-sharing provisions between Registrar and Commission
55Section 27 amended (Contents of register)
56New section 67A inserted (Duty to communicate information about mobile traders)
67ADuty to communicate information about mobile traders
57Schedule 1AA amended
58Amendment to Financial Service Providers (Registration) Regulations 2010
59Amendments to Credit Contracts and Consumer Finance Regulations 2004
Legislative history

The Parliament of New Zealand enacts as follows: