Credit Contracts and Consumer Finance Amendment Bill

  • discharged on 09 April 2019

Hon Kris Faafoi

Credit Contracts and Consumer Finance Amendment Bill

Government Bill



Explanatory note
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)
13Section 11 amended (Meaning of consumer credit contract)
14New section 17A inserted (When creditor advertises in another language)
17AWhen creditor advertises in another language
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)
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 about how fees calculated)
41ARecords about how fees calculated
22New subpart 6A of Part 2 inserted
45ACosts of borrowing must not exceed loan advance
23New subpart 9 of Part 2 inserted
59BDuty of directors and senior managers of creditors
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 initial or variation disclosure
95BGuidelines for reducing effect of failure to make initial or variation disclosure
30Section 96 amended (Injunctions)
31New section 98A and cross-heading inserted
98ACompliance orders
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)
40New subpart 8 of Part 4 inserted
116ADirectors and senior managers may also be liable for statutory damages or compensation
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
42New section 132A inserted (Disclosure before debt collection starts)
132ADisclosure before debt collection starts
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)
56Section 67 amended (Duty to co-operate and communicate information in certain circumstances)
57Schedule 1AA amended
58Amendment to Financial Service Providers (Registration) Regulations 2010
59Amendment to Credit Contracts and Consumer Finance Regulations 2004
6AHigh-cost consumer credit contracts for which costs of borrowing must not exceed loan advances

The Parliament of New Zealand enacts as follows: