“We believe the change proposed in the amendment bill is fair as it simply tidies up the existing legislation to ensure that all breaches from 2015 to 2019 are treated the same as those currently,” said New Zealand Banking Association (NZBA) chief executive Roger Beaumont (pictured).
“It is important to note that consumers will still be protected, and lenders will still be appropriately held to account once the law is amended.”
Amendment confirms court discretion remains intact
Beaumont emphasised that the proposed changes do not limit legal recourse but instead clarify that courts can determine appropriate outcomes for disclosure failures.
“The changes simply confirm that, if a lender fails to meet their disclosure obligations, the courts can decide what is a ‘just and equitable’ outcome for that failure,” he said. “That is no different to other civil and criminal cases and does not stop any current or potential future cases brought under this act. Consumers and regulators can continue to bring CCCFA claims before the courts.”
Calls for change span nearly a decade
NZBA, which recently highlighted the resilience of bank customers during ongoing economic pressures, has advocated for reform on this specific issue for years, citing the mismatch between minor administrative breaches and the scale of penalties.
Read More: Banking sector supports CCCFA amendment to fix unfair penalties
