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.
It was meant to protect vulnerable borrowers from getting too deep into debt or being targeted by predatory lenders.
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.
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,
Industry body wants to work with government to solve problems with new lending laws as vehicle loans plummet.