Business.Scoop » Banks welcome lifting of consumer lending rules

Press Release – New Zealand Banking Association

Banks are responsible lenders and take their obligations to the law and customers seriously. The change still means that consumers are protected and lenders must be responsible.

The banking sector welcomes the government’s decision to remove the credit availability provisions under the Credit Agreements and Consumer Finance Act, as well as the update of the Responsible Lending Code, which is expected to improve access to loans.

New Zealand Banking Association chief executive Roger Beaumont says: “We are pleased that overly stringent credit scores have been removed. This will help to correct the ‘one size fits all’ approach that treated all types of loans and borrowers the same.

“Banks are responsible lenders and take their obligations to the law and to customers seriously. The change still means that consumers are protected and lenders must be responsible.

“Removing overly stringent regulations and updating the Responsible Lending Code will help restore banks’ flexibility and freedom to help customers. This is particularly true in the event of a national emergency or customers in need.

“This is a good first step in the CCCFA amendment process. Banks look forward to working with the government in the next phase.”

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