This chapter includes information about the following areas:
Note: The key consumer credit legislation, the Credit Contracts and Consumer Finance Act 2003 (CCCF Act), was amended from June 2015 to provide greater protection for consumers. Those changes have been incorporated into this chapter. The changes include new “lender responsibility principles” that lenders must comply with. For example, a lender must be satisfied that the borrower can repay the money without substantial hardship, and they must help the borrower make an informed decision about whether to enter into the contract. The maximum penalties for lenders who breach the rules in the Act have also been significantly increased. Other changes include an increase in the “cooling off” period (the time after signing a contract when you can change your mind and cancel), from three to five working days. The Act that used to deal with repossession processes, the Credit (Repossession) Act 1997, has also been repealed, and its provisions have been moved, with some changes, into the CCCF Act.