Have your say on lending guidance

The Commerce Commission is putting together guidance to help lenders better understand forthcoming changes to the Credit Contracts and Consumer Finance Act (CCCFA).

It is seeking public feedback on draft guidance for directors and senior managers of consumer credit providers and mobile traders on how to comply with the due diligence duty.

From October 1, 2021, bosses of consumer credit providers, including mobile traders selling on credit, will need to exercise due diligence to ensure the creditor complies with its duties and obligations under the Act.

Anna Rawlings, commission chairwoman, says the guidelines will clarify how directors and senior managers should approach the task of performing their duties.

“This is an important new obligation. The new due diligence duty obliges and incentivises individual corporate officers to drive a culture of compliance with the CCCFA from the top down,” she explains. 

“We are aware that lenders are eager to understand the law and aspects of our likely approach to enforcement. We look forward to considering the public’s feedback on this draft.”

For more information and to view the draft guidelines, visit the commission’s website.

Submissions close on March 19 and can be made through the commission’s submission portal.