Better credit information for borrowers

Commerce and Consumer Affairs Minister Paul Goldsmith today announced new consumer credit regulations aimed at giving consumers information they need to make informed credit decisions.

“The regulations will mean New Zealand borrowers can access information that will help them compare their options when they’re borrowing money or buying goods on credit,” Mr Goldsmith says. 

“The changes include a range of protections for consumers which come into effect on 6 June 2015. They improve the information lenders provide to consumers, helping them compare the rates and fees offered by all lenders before borrowing money.

“From June credit card statements will include a minimum repayment warning that states how paying only the minimum amount each month will end up costing the consumer more.

The regulations give effect to new requirements introduced by the Credit Contracts and Consumer Finance Amendment Act, which was passed in June 2014. 

“The reforms aim to promote fair, efficient and transparent credit markets and promote competition, consumer choice and protection. This is another important step in delivering on the Government’s Business Growth Agenda,” Mr Goldsmith says.

“I would like to thank all those who provided feedback during the development of these regulations. Our aim is to ensure New Zealand has a consumer credit market that is effective, competitive and responsible towards consumers.”

Notes for editors:

For further information on consumer credit laws see: http://www.consumeraffairs.govt.nz/legislation-policy/changes-to-credit-laws/what-consumers-need-to-know/main-changes-to-credit-laws