Submission on the draft Responsible Lending Code 2020

FinCap welcomes the opportunity to comment on the Updated draft Responsible Lending Code 2020 (the revised code).

Financial Mentors across Aotearoa New Zealand regularly see the harm caused by irresponsible lending of unaffordable loans or lenders not offering appropriate and realistic assistance where borrowers have difficulty making repayments.

We generally support the bulk of the content that has resulted and strongly support the Government’s decision to stick to the October implementation timeframe.

However, in a wider context we are conscious some forms of lending may not be covered by this code when consistency in protections is essential to fair outcomes for all borrowers who may struggle to repay.