The Government recently made changes to the Credit Contracts and Consumer Finance Act 2003 and the Responsible Lending Code which came into effect on 1 December 2021. Although these changes were made to protect vulnerable borrowers from increasing penalties and irresponsible lending, we are seeing a flow on effect to lending for homeowners, small businesses, and first home buyers.
Due to recent feedback from clients regarding these new lending rules and the scrutiny of spending, we ask that before you talk to your bank about any of your current or possible future facilities, please call us first.
We have seen facilities pulled by banks just by asking simply hypothetical queries.
Our advisors may be able to find a solution without needing to speak to the bank or may be able to ensure things are all lined up before speaking with your broker or banker.
There is a current petition to have these rules reviewed as they are far more severe than intended. We have signed this petition. If you would like to also, you can here. The petition will close on 25 February 2022 and will then be presented to parliament.
We hope that once received, the Government will make rapid changes to the new rules to ensure New Zealand Businesses can continue to grow and thrive after two years of hardship.
Please do not hesitate to get in touch with your usual Greenlion Advisor or Director to discuss how this might affect you.