credit-contracts-and-consumer-finance-amendment-regulations-no-2-2020-draft-for-consultation.pdf - DRAFT FOR CONSULTATION Credit Contracts and Consumer

Credit-contracts-and-consumer-finance-amendment-regulations-no-2-2020-draft-for-consultation.pdf

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DRAFT FOR CONSULTATION Credit Contracts and Consumer Finance Amendment Regulations 2020 Governor-General Order in Council At Wellington this day of 2020 Present: in Council These regulations are made under section 138(1) of the Credit Contracts and Con- sumer Finance Act 2003— (a) on the advice and with the consent of the Executive Council; and (b) on the recommendation of the Minister of Commerce and Consumer Affairs made in accordance with section 138(1BC) and (1C) of that Act. Contents Page 1 Title 2 2 Commencement 3 3 Principal regulations 3 4 New regulations 4AA to 4AN and cross-headings inserted 3 Assessment whether likely that credit or finance provided under agreement will meet borrower’s requirements and objectives 4AA Lender must collect and assess information 3 4AB Additional requirements for certain waivers, warranties, 4 and insurance Consultation draft 1
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Credit Contracts and Consumer Finance Amendment r 1 Regulations 2020 Assessment of likelihood of substantial hardship 4AC Purpose 4 4AD Interpretation 5 4AE General rule 5 4AF Lenders must estimate borrower’s likely income 6 4AG Lenders must do initial estimate of borrower’s likely 6 relevant expenses 4AH Lenders must adjust initial estimate of borrower’s likely 6 relevant expenses 4AI High-cost consumer credit contracts —Presumption of 7 substantial hardship Lender responsibility to ensure advertising complies with advertising standards 4AJ Purpose of regulations 4AK to 4AN 7 4AK Advertising of payment amounts 7 4AL Advertising of interest rates or charges 8 4AM Advertising of credit fees if advertisement states there is 8 no interest 4AN Prohibited advertising practices 8 5 New regulations 4F to 4H and cross-heading inserted 9 Disclosure 4F Disclosure of agreed changes 9 4G Disclosure of changes following exercise of power 10 4H Disclosure of changes to guarantors 10 6 Regulation 20 amended (Contract manager appointed by new 11 creditor) 7 New regulations 22 and 23 and cross-heading inserted 11 Other provisions about securitisation or covered bond arrangements or similar arrangements 22 Circumstances in which section 59B(4) of Act applies 11 23 How section 59B of Act applies in those circumstances 11 8 New regulation 24 and cross-heading inserted 12 Disclosure before debt collection starts 24 Disclosure before debt collection starts 12 Regulations 1 Title These regulations are the Credit Contracts and Consumer Finance Amendment Regulations 2020. Consultation draft 2
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(b) the purpose of the credit or finance: (c) the term of the credit or finance: (d) Credit Contracts and Consumer Finance Amendment Regulations 2020 r 4 2 Commencement (1) Regulations 6 and 7 come into force on 1 June 2020. (2) The rest of these regulations come into force on 1 April 2021.
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