Rules to help borrowers

The government has unveiled regulations aimed at giving consumers all of the information they need to make informed credit decisions. The new rules are aimed at enabling borrowers to access information that will help them compare their options when accessing funds or purchasing goods on credit. The changes come into effect on June 6, 2015. The regulations give effect to new requirements introduced by the Credit Contracts and Consumer Finance Amendment Act, which was passed in June 2014.  For example, credit-card statements will have include a minimum repayment warning that states how paying only the minimum amount each month will end up costing the consumer more. “The reforms aim to promote fair, efficient and transparent markets, and promote competition, consumer choice and protection,” says Paul Goldsmith, Minister of Commerce and Consumer Affairs. “Our aim is to ensure New Zealand has a consumer credit market that’s effective, competitive and responsible towards consumers.” Click here for more information on the changes