top of page
  • Writer's pictureMeurig Chapman

CCCFA | The Positive Impact on Kiwi Consumers

Learn how the recent change in requirements have impacted lenders


New Zealand’s Credit Contracts and Consumer Finance Amendment Act 2019 (CCCFA) is designed to enhance consumer protection when it comes to lending and credit controls. The legislation is intended to make lending more transparent and accessible to consumers and ensure that lenders provide borrowers with clear information about their loans.


The CCCFA introduced a raft of key changes to the requirements for lenders. Lenders need to disclose all of the fees and charges associated with a loan upfront, including the total cost of credit, interest rates and fees. This information must be provided to borrowers in writing and in a clear and easy-to-understand format.


Another important change is the requirement for lenders to assess whether a borrower can afford to repay the loan. This is done by conducting a credit check and evaluating the borrower’s income and expenses. If a lender determines that a borrower cannot afford to repay the loan, they are not allowed to offer the loan.


Implementing these changes has not been without its challenges for banks and finance companies operating in New Zealand. Some of the challenges faced by lenders involve being able to accurately assess a borrower’s ability to repay a loan, particularly in cases where the borrower has a complex financial situation. Lenders also need to ensure they are providing clear and easy-to-understand information to borrowers about the cost of credit and any associated fees and charges. Many lenders have had to revise their lending practices and policies and invest significantly in new systems and processes to ensure compliance with the new legislation.


Overall, the CCCFA has had a positive impact on consumers in New Zealand, providing greater protection and transparency in lending practices. While the legislation has presented challenges for lenders, it has also provided an opportunity for them to improve their processes and systems to better meet the needs of consumers.


Understanding and implementing the requirements of the CCCFA can be challenging, requiring specialised knowledge and expertise. Happy Prime supports business to navigate the complexities and achieve compliance, while also mitigating consumer credit risks effectively. We also offer comprehensive CCCFA training to equip teams with the knowledge and skills necessary to comply with the legislation.


Find out more.



bottom of page