Submission on exposure draft of updated Credit Contract and Consumer Finance Regulations 2004 and Responsible Lending Code

Whānau should not face a position where lending that was always going to be unaffordable causes or compounds hardship. The onus must be on lenders to not disregard that collection on due repayments is likely to cause harm.

We strongly recommend in this submission that lenders are reminded that every whānau has unique circumstances and that strengths-based conversations should be had to clarify any inconsistencies. It is essential that lenders are not guided to ignore clear inconsistencies in the information that might indicate lending will likely cause substantial hardship.