18 Nov 2014

Govt releases responsible lending draft

11:04 am on 18 November 2014

The Government is moving to clamp down on money lenders.


The Responsible Lending Code will follow the Credit Contracts and Consumer Finance Amendment Act 2014. Photo: PHOTO NZ

It has released a draft code of conduct aimed at encouraging responsible lending.

The final code will give lenders guidance on how to implement the obligations contained in the new credit contracts law passed earlier this year.

Commerce Minister Paul Goldmsith said the Government wanted to stop lenders preying on vulnerable customers.

The code would not be binding on lenders but evidence of compliance with it would be viewed as broader compliance with the law.

Mr Goldsmith is seeking feedback from interested groups and intends to issue the final code in March.

Read the Government's Draft Responsible Lending Code

Get the new RNZ app

for ad-free news and current affairs