Lending guidance finalised
The Commerce Commission has completed putting together guidance for directors and senior managers of consumer credit providers and mobile traders on how to comply with new due diligence duty rules.
Directors and senior managers of lenders, including mobile traders selling on credit, will need to exercise due diligence from October 1, 2021, to ensure their business complies with its duties and obligations under the Credit Contracts and Consumer Finance Act (CCCFA).
The guidance explains which staff are subject to the diligence rules and provides information about what it means for them.
Anna Rawlings, commission chairwoman, says this is an important new obligation and the guidance was put together following public consultation.
“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.
“Failure to exercise the required levels of care, diligence and skill could expose you, personally, to significant financial consequences, including pecuniary penalties of up to $200,000.
“We would like to thank all those who provided submissions in response to our draft guidelines, the feedback was both valuable and important to informing our final guidance.”
The finalised due diligence guidance can be found on the commission’s website.