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CCCFA “not understood” by politicians

The ACT Party believes the Credit Contracts and Consumer Finance Act (CCCFA) was not properly understood when it went through parliament and is now asking for a review.

Monday, January 10th 2022, 6:01AM 2 Comments

by Eric Frykberg

Party leader David Seymour has written to the Finance and Expenditure Committee, asking for an inquiry into the impact of the changes.

The law has been widely criticised for making it harder for many ordinary people to get a loan and for imposing mountains of costly paperwork on brokers.

Seymour himself helped oversee the passage of the law through parliament but said the process was unclear.

“I was a member of the Finance and Expenditure Committee when this law was passed,” Seymour said.

“There was intense debate about the interest rates, auxiliary fees, and the terms of small, high-cost loans for vulnerable people.

“Everyone believed we were dealing with predatory lenders, such as those with lending trucks referred to in the Bill. Nobody believed that the law would affect every single person seeking credit, whether they were vulnerable or not, but that’s exactly what’s happened.”

So he has written to the committee and to its chair, Duncan Webb, asking for a review or at the very least a briefing into the “havoc” the law was causing.

“What is the point of the Committee having such power if it won’t use its powers to hear the public’s concerns about the laws it’s been involved in making?” Seymour wrote.

“I hope that the Committee will hold an inquiry into the operation of the law so that the people affected can have their say. If it agrees with their concerns, it should make recommendations to the Minister to fix the law as soon as possible.”

A response to Seymour’s letter has been sought from the committee chair, Duncan Webb.

Seymour copied his letter to the Minister of Commerce and Consumer Affairs, David Clark.

Meanwhile Clark has not yet responded to more criticism on the same subject.

He had been asked for an urgent meeting on the CCCFA with the industry group, Financial Advice New Zealand.

Its chief executive Katrina Shanks said she had received an acknowledgement of the Minister's receipt of the letter but not an agreement to actually meet.
But she said such a meeting was still needed and evidence of the negative impacts of the bill continued to mount up.

Tags: CCCFA

« Industry wants minister's ear over CCCFASelect Committee may look at CCCFA next month »

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Comments from our readers

On 10 January 2022 at 8:10 am w k said:
i always wondered why politicians aren't regulated like any other professions?

why MPs shouldn't be required to have at least level 5 accounting, economics, human resource management, public administration and supply chain for a start. and 10 years management experience in the respective portfolio they hold. at the moment anyone with zilch work experience and smoke weed can be an MP as long as he/she have the gift of the gap and is popular.
On 11 January 2022 at 12:16 pm two cents said:
GREAT! Pass a bill and then ask about the potential repercussions later - after ripping off new buyers' deposits and dashing their hopes of ever owning a home?

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Lender Flt 1yr 2yr 3yr
AIA 6.35 5.25 5.45 5.99
ANZ 6.34 5.59 6.05 6.29
ANZ Blueprint to Build - - - -
ANZ Special - 4.99 5.45 5.69
ASB Bank 6.35 ▼4.99 5.45 5.69
Avanti Finance 6.65 - - -
Basecorp Finance 7.25 - - -
Bluestone 6.89 - - -
BNZ - Classic - 4.95 5.39 5.69
BNZ - Mortgage One 6.39 - - -
BNZ - Rapid Repay 6.39 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 6.39 5.55 5.99 6.29
BNZ - TotalMoney 6.39 - - -
CFML Loans 7.25 - - -
China Construction Bank - 5.35 5.80 5.99
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼4.89 - -
Co-operative Bank - Owner Occ 6.25 ▼4.99 5.39 ▼5.69
Co-operative Bank - Standard 6.25 ▼5.49 5.89 ▼6.19
Credit Union Auckland 5.95 - - -
First Credit Union Special 5.85 5.35 5.85 -
Heartland Bank - Online 4.60 ▼4.79 5.29 5.39
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 6.50 5.60 6.00 -
HSBC Premier 6.34 5.09 5.34 5.59
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.00 ▼4.79 5.15 ▼5.69
Kainga Ora 5.85 5.31 5.58 5.97
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 6.00 5.95 6.45 6.79
Kiwibank - Offset 6.00 - - -
Kiwibank Special - 4.95 5.45 5.89
Liberty 4.84 - - -
Lender Flt 1yr 2yr 3yr
Nelson Building Society ▲6.95 5.55 6.15 -
Pepper Money 5.29 - - -
Resimac 5.59 6.54 6.44 6.98
SBS Bank 6.29 ▼5.39 ▼5.79 5.99
SBS Bank Special - ▼4.89 ▼5.29 5.49
Select Home Loans 6.89 - - -
TSB Bank 7.05 5.65 6.09 6.39
TSB Special 6.25 4.85 5.29 5.59
Unity 5.65 4.95 5.55 -
Wairarapa Building Society 6.49 5.55 6.15 -
Westforce credit union - Special - 5.35 5.85 -
Lender Flt 1yr 2yr 3yr
Westforce credit union - Standard 5.85 6.05 6.55 -
Westpac 6.39 5.55 6.05 6.29
Westpac - Offset 6.39 - - -
Westpac Special - 4.95 5.45 5.69
Median 6.34 5.33 5.79 5.93

Last updated: 11 August 2022 8:40am

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