The Credit Contracts and Consumer Finance Amendment Bill passed its third reading last week, delivering simpler, clearer, and more workable lending laws for New Zealanders, Commerce and Consumer Affairs Minister Cameron Brewer says.
"New Zealanders should be able to access affordable finance when they need it, whether they're buying a home, renovating, upgrading a car, or managing household costs," Mr Brewer says
"But under Labour's CCCFA changes, lending became harder, slower, and more frustrating than it needed to be. Borrowers were put through intrusive and unnecessary checks, lenders became overly cautious, and good Kiwis were left jumping through hoops just to get a loan.
"These rules were meant to protect consumers. Instead, they created complexity, confusion, and cost.
"This Government promised to bring common sense back to lending, and today we have delivered.
"We are simplifying the rules, reducing unnecessary compliance costs, and supporting a more competitive lending market. That means better access to credit, more choice, and more affordable finance for consumers."
Responsibility for credit regulation will transfer from the Commerce Commission to the Financial Markets Authority, bringing firms into the FMA's licensing regime and creating a clearer, more consistent regulatory system.
"We are also removing unnecessary personal liability for senior managers and directors and making consequences for certain disclosure breaches more proportionate. Accountability remains, but the rules need to be workable and fair."
The Government is also strengthening consumer protection through the Financial Service Providers (Registration and Dispute Resolution) Amendment Bill, which also passed its third reading last week.
"When things go wrong, consumers need access to fair and independent dispute resolution.
"This Bill improves accountability across financial dispute resolution schemes by allowing for more consistent independent reviews and minimum requirements for scheme board members, including skills, experience, and independence from industry.
"Together, these Bills are about restoring balance.
"We are fixing the basics, reducing unnecessary red tape, and building a more competitive economy. We have turned the page on Labour's bad CCCFA settings and delivered clearer rules, stronger competition, better access to finance, and proportionate consumer protection."
