FSF in the News
Government's controversial home lending rules: Minister David Clark announces tweaks less than four months after law change
NZ Herald, 11 March 2022
The Government's tweaks to the responsible lending rules may not move the dial enough to make a difference to borrowers, a group representing New Zealand's banks says.
This morning Commerce and Consumer Affairs Minister David Clark announced changes to Credit Contracts and Consumer Finance Act - less than four months after it was tightened.
Credit crunch or responsible lending? Has the law gone too far?
NZ Herald, 4 February 2022
It was meant to protect vulnerable borrowers from getting too deep into debt or being targeted by predatory lenders.
Instead, the introduction of regulations tightening up the Credit Contracts and Consumer Finance Act (CCCFA) has resulted in a raft of tales from would-be borrowers about being turned down for home loans [...]
Are non-bank lenders able to full the mortgage lending gap?
Stuff.co.nz, 30 January 2022
Non-bank lenders are reporting a surge in mortgage inquiries in the wake of new lending rules, but those applications are not guaranteed success, Lyn McMorran, executive director of the Financial Services Federation says. Changes to the Credit Contracts and Consumer Finance Act (CCCFA), which came into force on December 1, require lenders, including banks, to scrutinise borrowers far more rigorously than in the past.
Editorial: Lending an ear to warnings could have spared red faces
NZ Herald, 21 January 2022
The Financial Services Federation (FSF), the industry body for responsible non-bank lenders, has added to the chorus of disapproval by writing to Clark and officials outlining its concerns. "These laws do not just affect bank customers, but people seeking finance for anything from a motor vehicle to a household appliance or a mortgage from a non-bank provider, which is a steadily growing sector," the federation says.
Finance companies urge Minister to act
Autofile, 19 January 2022
The Financial Services Federation (FSF) has written an open letter to David Clark, Minister for Commerce and Consumer Affairs, and his officials outlining what it believes needs to be done to ensure amended finance laws work.
The industry body for responsible non-bank lenders says it has a desire to work with Clark “to get it right” [...]
New lending rules causing 'credit crunch'
NBR, 17 January 2022
"It is a difficult thing, getting a politician to admit they’ve messed up.
As the Ardern administration returns to the business of governing in 2022, Shoeshine will be fascinated to watch how it deals with the hullabaloo that’s broken out over the new consumer lending regulations."
Buying a TV on credit is about to get a lot tougher
NBR, 29 November 2021From Wednesday, banks and other lenders will have to follow stricter procedures when it comes to lending money and, for some borrowers, that is going to mean disappointment.
Changes to consumer lending rules from 1 December
Interest.co.nz, 17 November 2021Changes to the Credit Contracts and Consumer Finance Act (CCCFA) mean applications for any personal loan or mortgage could take longer to process from December 1st, with borrowers required to front up with more detailed information and the industry facing stiff penalties for non-compliance.
New lending laws a 'nightmare' for people seeking home loans
Stuff.co.nz, 9 December 2021
McMorran says these conversations could involve sentences such as: “I see you have got Netflix. Would you be willing to give that up to get this loan?” Or: “I see you take $200 a week out of the ATM. What do you do with that money? Could you stop doing that?
“It's a lot more intrusive,” McMorran says.
Almost half of NZ consumer lending financed by non-banks
NZA 1 October 2021
New data has shown that almost half of consumer lending in New Zealand is being financed by non-bank members of the Financial Services Federation (FSF) - something executive director Lyn McMorran said shows that Kiwis are “embracing choice when it comes to financial services.”