What you should expect from your lender when you are borrowing money.
We are not a Lender, we are a Finance Placement Company and we include the Lender Responsibility Principles for you below.
Our Lender’s responsibilities
Make reasonable enquiries before entering into a loan (or taking a guarantee) to be satisfied that:
- the credit provided will meet the borrower’s needs and objectives
- the borrower or guarantor will be able to make the payments under the loan, or comply with the guarantee, without suffering substantial hardship.
Help borrowers and guarantors to make informed decisions
Help borrowers decide whether to enter into the agreement, agree to variations or any later decisions and to be reasonably aware of the contract’s effect by making sure:
- advertising is not likely to be misleading, deceptive or confusing to borrowers
- the contract’s terms are expressed in plain language in a clear, concise and intelligible way
- information is not presented in a way that is likely to be, misleading, deceptive or confusing.
Act reasonably and ethically:
- when breaches of the loan occur or when other problems arise
- when a borrower suffers unforeseen hardship
- during repossession including:
- taking all reasonable steps to ensure goods and property are not damaged
- adequately storing and protecting repossessed goods
- not exercising the right to enter premises in an unreasonable manner.
Not use oppression in dealings with borrowers:
- to ensure contracts are not oppressive
- their lending powers are not exercised in an oppressive manner
- borrowers are not induced into contracts by oppressive means.
Comply with all of their other legal obligations to borrowers. This includes:
- following the rules about disclosure, credit fees, unforeseen hardship applications, and credit repossession in the Credit Contracts and Consumer Finance Act
- not making false or misleading representations or including unfair contract terms as required by the Fair Trading Act
- carrying out their services using reasonable care and skill, as required by the Consumer Guarantees Act.
Remedies if a lender does not comply
If a lender doesn’t comply with any of the principles the Courts can take this into account in deciding whether or not:
- the lender has acted oppressively under Part 5 of the CCCFA
- to make any orders for refunds, compensation, exemplary damages or other orders.
It does not, however, make the credit contract or any security interest unenforceable.
Read the Commerce Commission’s factsheet on Consumer Credit.