Loan-shark laws update

New legislation that will overhaul consumer credit laws to ensure consumers’ interests are protected passed its second reading in the Beehive yesterday. Consumer Affairs Minister Craig Foss says the Credit Contracts and Financial Services Law Reform Bill will require lenders to act responsibly and ensure borrowers are given information needed to make informed decisions. The bill increases consumer protection in cases whereby goods that may be repossessed must be identified by the financier. Some items such as beds, medical equipment and portable heaters will be excluded from repossession, while credit repossession provisions will be enforced by the Commerce Commission. “We are targeting unscrupulous lenders and boosting enforcement powers and penalties to crack down on those that break the law,” says Foss. “Reshaping consumer lending is also an important part of the government’s business growth agenda. “These changes will boost confidence in the role consumer credit plays in our financial markets, while providing increased protection for New Zealand’s most vulnerable consumers.” Meanwhile, the Financial Services Federation has been urging the government to change two new clauses in bill that will hit lenders and car dealers. They relate to consumer-related insurance products, such as guaranteed asset protection and payment protection insurance, and extended warranties. FOR MORE ON THAT, READ THE LATEST ISSUE OF AUTOFILE MAGAZINE