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Low key CCCFA enquiry starts

The enquiry into the Credit Contracts and Consumer Finance Act (CCCFA) has started but it appears to be reasonably low key.

Wednesday, January 19th 2022, 1:18PM 1 Comment

by Eric Frykberg

Preliminary indications suggest the enquiry, ordered on Friday by the Minister of Commerce and Consumer Affairs David Clark, will have a limited scope..

It followed a storm of protest against the Act which came into effect in December.

Critics alleged that legitimate borrowers with a good credit record were no longer able to get access to the money they were previously eligible for.

This was because detailed expenditure such as takeaway food was being included in their monthly costs, sometimes leading to a credit downgrade.

In response to repeated criticism, Clark called for an inquiry by the Council of Financial Regulators (COFR) last Friday.

The COFR is an inter-departmental organisation made up of the Reserve Bank, Treasury, the Financial Markets Authority, the Ministry for Business Innovation and Employment (MBIE) and the Commerce Commission.
MBIE is the organising body for the Council.

It was due to hold its first meeting on Tuesday.

But comments from Clark suggested its scope would be limited.

“The COFR will convene to talk about the CCCFA which will trigger engagement with banks,” an official in Clark's office said.

“The Minister will be briefed in coming weeks.

“There are no terms of reference, (the inquiry) is less formal than that.”

These comments mesh in with earlier statements from Clark which were focussed on whether banks were properly administering the law rather than on the law itself.

This approach has been criticised by the brokers who want a more fundamental investigation.

A petition against the law in continuing.

« Advisers inundated with policy changes by banksANZ Bank now sees cash rate peaking at 3% »

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Comments from our readers

On 19 January 2022 at 5:59 pm Andy the adviser said:
The new CCCFA has failed completely. It is far easier now for clients to go direct to finance companies, GEM, BNPL and Hire purchase than save $4-5000 by using a home loan top-up.

In the last month I have had several clients avoid the banks, simply for speed and convenience.


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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

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