The Government is pressing ahead with reforms to “improve New Zealanders’ access to credit”, following the Select Committee’s report on the Credit Contracts and Consumer Finance Amendment Bill.
The legislation aims to simplify lending rules, reduce excessive compliance, and ensure responsible borrowers can obtain finance when needed. The changes respond to widespread concerns that previous regulations made borrowing unnecessarily difficult, with lenders forced to question applicants over minor expenses such as takeaways or streaming subscriptions.
Under the revised bill, retrospective changes will allow courts more discretion to deliver fair outcomes, though ongoing court cases will be exempt. The reforms also streamline oversight by consolidating the roles of multiple regulators and removing personal liability for directors and senior managers over “minor administrative errors”.
Officials say the measures are designed to restore common sense to lending practices, reduce red tape for financial institutions, and make it easier for individuals and businesses to access affordable credit as part of a broader overhaul of the financial services framework.
Image credit: Towfiqu Barbhuiya
Would be good to see an end to “ageism” in lending practises. Where people in their late 40’s and 50’s don’t have to struggle to get a modest loan, when they have, for example, seven figure equity. This ridiculous situation really limits the ability of slightly older people to leverage a lifetimes gains to open businesses or further build wealth that benefits society and short sighted banks who don’t know a “safe risk”, when they see one.
Does this mean the Govt. are going to stop giving money to choirs to sing to trees to promote their growth and ward evil spirits away ?
Yes read about that and other absurdities…..that’s govt waste as opposed to private investment…..
Does this mean the Govt. are going to stop giving money to choirs to sing to trees to promote their growth and ward evil spirits away ? The lengths the Govt. will go to keep the Ponzi housing market going knows no bounds.