Finance law views sought

The Ministry of Business, Innovation and Employment (MBIE) has opened consultation on an exposure draft of the Credit Contracts and Consumer Finance (Buy Now Pay Later) Amendment Regulations.

These regulations, when finalised, will apply the Credit Contracts and Consumer Finance Act (CCCFA) to buy now, pay later products.

Most CCCFA obligations will apply to BNPL. However, only BNPL providing credit over a certain dollar threshold will be required to perform an affordability assessment under the legislation. 

BNPL credit under this threshold will require comprehensive credit reporting. MBIE is seeking feedback on:

• The impact of setting the threshold for BNPL lenders to assess affordability at $600.

• Two options for these affordability assessments above this threshold – in accordance with the CCCF Regulations 2004 and in accordance with the CCCFA’s principles-based requirement, but not the process prescribed in those regulations.

• Any other issues relating to the drafting of the draft regulations.

“Your feedback will be used to ensure the draft regulations achieve the policy intent and do not result in any unintended consequences,” says a MBIE spokesperson

Consultation close at 5pm on February 24. You can access the exposure draft, consultation paper and information on how to provide feedback on MBIE’s website here: https://www.mbie.govt.nz/have-your-say/exposure-draft-of-credit-contracts-and-consumer-finance-buy-now-pay-later-amendment-regulations-2022