Bolton hopes the petition, which has garnered more than 5,000 signatures, will highlight some of the issues borrowers (including home and business owners) face and encourage the government to review the CCCFA.
Responding to Newshub, David Clark said that under the new regulations, lenders are required to follow a rigorous process to determine borrowers’ income and expenses.
This will help ensure that the loans are affordable and appropriate.
“With these checks, lenders can decide that a borrower is unable to afford a loan … responsible lenders already do, and their borrowers will see less change as a result.”
The CCCFA Amendments, which were developed after an engagement and consultation process, are intended to âstrike a balanceâ between the interests of borrowers and lenders.
“I am confident that regulatory requirements will improve the quality and robustness of assessments performed at all levels,” added Clark.
Once the changes are fully incorporated, government officials will speak with lenders and consumer advocates to see what the impact has been and if any adjustments are needed.
Banking ombudsman Nicola Sladden told Newshub that CCCFA rules require all lenders to conduct “thorough investigations” to ensure loans are suitable and affordable, before they can be approved.
“We welcome the clarity provided by the changes and the added protection against unaffordable debt, especially for vulnerable consumers,” Sladden said.
People who are considering getting a new mortgage are advised to register early and know what they need to do to prepare.
An overview of changes to loans under the CCCFA is available here.