Responsible lending code revealed
The code provides guidance on the new lender responsibility principles in the Credit Contracts and Consumer Finance Act. Both come into force on June 6.
Commerce and Consumer Affairs Minister Paul Goldsmith said the code and the lender responsibility principles will give greater protection to consumers when they borrow money.
“They will allow borrowers to have better access to information, and better protection from those lenders who engage in predatory practices. At the same time, they will keep down compliance costs for those lenders who already have good, responsible systems in place.”
The code itself will not be binding, but evidence of compliance with it will be considered evidence of compliance with the binding lender responsibility principles set out in the Act.
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