Changes to consumer lending laws - known as CCCFA

The consumer lending laws, also known as CCCFA, have recently changed - you may have read or heard about this in the media. If you're planning to apply for a home loan, credit card, personal loan or overdraft in the near future, being aware of the changes will help you understand what this means for processing times and the type of information we'll ask you for.

About the CCCFA changes

The consumer credit regulations, officially named the Credit Contracts and Consumer Finance Act 2003, and commonly referred to as CCCFA, govern how customers borrow money.

Changes to the CCCFA came into effect on 1 December 2021 and are designed to ensure that as a customer you make informed decisions, understand what you're agreeing to and to help protect you from taking on unaffordable debt.

What this means for you

The CCCFA changes affect the way we assess and process lending applications. So if you apply to borrow money from us, say for a home loan, we’ll need to:

  • Collect and verify detailed information about your income, debts and expenses
  • Ensure what you’re applying for is affordable for you.

This will require some extra checks when we're processing your application, so the process will likely take longer. By doing these checks, we're trying to make sure that you'll be able to comfortably make the required repayments along with any other regular expenses you have.

Preparing to apply

If you apply for a home loan, credit card, personal loan or overdraft with us, you’ll need to provide more information than you might have done previously, even if you already bank with us.

  • Please be prepared to share details of your income, debt and expenses
  • In most cases we'll ask you to supply three months worth of bank statements.

You may also need to supply pay slips, IRD statements or other information. If you bank with us and use a Kiwibank account for all your income and expenses we'll already have some of these details.

Expected processing times

The extra checks we’ll carry out will make the application process longer and may initially increase wait times - we’re doing our best to reduce how this impacts you.

If you're applying for a home loan, credit card, personal loan or overdraft, we suggest applying as soon as you can to allow plenty of time for these extra checks. It's also a good idea to make sure you have the required income and expense information handy, including your recent bank statements.

What happens if your application isn't approved

If one of our ways to borrow isn't right for you at this time, we can work together to help find a suitable and affordable option for you.

It might even be a good time to consider making a money plan, creating a budget, or you could take a look at our tips to help you get on top of your debt.