Latest news with #CreditContractsandConsumerFinanceAmendmentBill
Scoop
02-08-2025
- Business
- Scoop
Taxpayers' Union Launches Campaign Against Dirty Deal Between Big Banks, ANZ, ASB, And The National Party
The New Zealand Taxpayers' Union has today launched a major campaign targeting Scott Simpson's Credit Contracts and Consumer Finance Amendment Bill, which includes retrospective provisions that would extinguish a live class action brought by tens of thousands of bank customers against ANZ and ASB banks. The campaign has been launched with National Party's annual conference attendees being delivered love letters from the Big Banks to recognise their special relationship and bank bailout. In the coming days, a digital advertising, billboard, and grassroots mobilisation campaign demanding that Finance Minister Nicola Willis and Minister of Consumer Affairs Scott Simpson drop the retrospective clauses from the Bill will be launched. Taxpayers' Union Executive Director Jordan Williams said: 'This is a disgraceful case of retrospective lawmaking that undermines the rule of law and destroys trust in New Zealand as a stable place to do business." "Last month the NZ Herald reported that the Bill is a result of backroom discussions between the Government and the Aussie-owned big banks which excluded the consumer-side parties of the very class action litigation the Bill is intended to extinguish." "Across the Tasman, the Aussie banks were hauled over the coals for misconduct and dishonest practises. But in Wellington, they are doing deals with the Beehive to be bailed out and 'protected' from consumer class actions. It's perverting the course of justice for tens of thousands." "Not only does the Credit Contracts and Consumer Finance Amendment Bill run roughshod over the rule of law, it is specifically designed to bail out the powerful at the expense of ordinary Kiwis.' 'Tens of thousands of Kiwis are part of a live class action over alleged unfair fees. Instead of letting the courts do their job, Nicola Willis and Scott Simpson are stepping in to shut it down with the stroke of a pen. That's not justice — that's Parliament playing defence for its mates.' The Union says the Bill makes a mockery of the Government's own rhetoric about restoring New Zealand's reputation as a safe, rules-based place to invest and do business. 'The same Ministers pushing the so-called Regulatory Standards Bill – which rightly warns against retrospective legislation – are now ramming through a bill that does exactly that. That's usually called hypocrisy.' 'When governments change the rules mid-litigation to protect the well connected, it sends a chilling message to investors, consumers, and taxpayers alike: the law in New Zealand is only as stable as the political connections of the people you're up against.' Williams concluded: 'This campaign isn't just focused at the Government. It's to hold to account and expose the disgraceful behaviour of ANZ and ASB banks to undermine their own customers' rights. This is about not just honesty and integrity and customer disclosures, but New Zealanders having the ability to enforce consumer protection law against the big end of town.' 'Either the Government walks the talk on stable, principled lawmaking, or they admit they're no better than the last lot. Kiwis deserve better than this grubby stitch-up.' The social media, digital and advertising campaign launches next week along with some more creative plans to ensure this bill gets the public scrutiny it deserves. 'Watch this space.'
NZ Herald
16-07-2025
- Business
- NZ Herald
ANZ dismisses $300m legal settlement offer as a ‘cynical' attempt to influence law reform
'This is a very new development and we're not in a position to comment at this stage,' it said. ASB has already paid 73,000 customers $8m to rectify the disclosure mistakes it made. The $600m offer comes as the Government proposes a law change that could make it harder for the customers (and the funders of the class action) to receive very large amounts in redress. The Government wants to change the law to give the courts discretion to issue lenders fair penalties if they fail to give customers the correct information about their loans. Under the existing law, lenders that made errors between 2015 and 2019 may have to refund customers all the interest and other fees they paid for the duration of the breach, regardless of how severe it was. The proposed change is controversial because it applies to the past. The Credit Contracts and Consumer Finance Amendment Bill attempts to ensure the law pre-2019 aligns with the law post-2019. Another contentious element of the bill, introduced by Commerce and Consumer Affairs Minister Scott Simpson, is that it specifically says it will apply to the ANZ/ASB case. NZ First and Act have their reservations While New Zealand First and Act supported the bill through its first reading in Parliament on May 20, neither party is particularly hot on it. NZ First deputy leader Shane Jones said his party would take advice before deciding whether to support the bill being passed into law in its current state. 'I wouldn't want to jump to any conclusion, but it's a very, very bad constitutional practice to summarily change people's rights unless there is a compelling case,' Jones said. Act leader David Seymour said his party supported the bill because it is a part of the Coalition Government. However, he wrote to Simpson (after Act supported the bill through its first reading) to raise his concerns over it applying retrospectively and targeting a matter before the courts. 'Who knows, maybe Scott [Simpson] will change his mind in response to this,' Seymour said. Parliament's Finance and Expenditure committee is considering public submissions on the bill. The bill will then need to pass its second and third readings before being enacted. Jenée Tibshraeny is the Herald's Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
Scoop
17-06-2025
- Business
- Scoop
Please Explain! The Proponents Of The Retrospective Law Change Need To Front Up
Those responsible for pushing a retrospective law change that could wipe out the rights of tens of thousands of New Zealanders must now front up to provide a formal 'please- explain'. That's the call from Scott Russell, the lawyer leading the Banking Class Action against ANZ and ASB, who has formally written to Cameron Brewer, MP as Chair of Parliament's Finance and Expenditure Committee urging him to call key decision-makers and proponents of the Credit Contracts and Consumer Finance Amendment Bill to publicly explain the rationale for this extraordinary intervention. The Committee has the power to compel individuals to appear and a more clear-cut case for using that power would be hard to imagine. 'The Government is rewriting the law half-way through an active legal case to benefit two powerful Australian-owned banks – and no one seems to be taking responsibility for making the decision,' said Russell. 'Hon Scott Simpson, Commerce Minister says the banks didn't ask for it. The banks haven't commented. MBIE won't release the documents. And the public is being asked to accept it all on blind trust. Enough. It's time for answers.' Russell's submission urges the Select Committee to summon the following to 'Please Explain': The Chair and Chief Executives of ANZ and ASB to explain their role in the process; Senior MBIE officials to justify the sudden shift to retrospective legislation following private meetings with the banks; The Reserve Bank to provide any evidence backing claims that the law change is needed to protect financial stability. 'If their rationale is sound, let's hear it. Because right now, no one has offered a credible explanation for why a law change ruled out during the public consultation stage was suddenly resurrected behind closed doors – and timed perfectly to potentially limit the liability of two banks in a live court case.' The Government has refused to release unredacted versions of the Regulatory Impact Statement and delayed key OIA responses until after the public submission period closes on 23 June. The Ombudsman is now investigating. 'The Select Committee process cannot be allowed to rubber-stamp a law change that overrides consumer rights and undermines public trust – especially when those responsible won't even show up to explain it,' Russell said. 'If this is in the public interest, let the public hear why.'
Scoop
21-05-2025
- Business
- Scoop
Have Your Say On Credit Contracts And Consumer Finance Amendment Bill
Press Release – The Finance and Expenditure Committee This bill is one of three that the Finance and Expenditure Committee is considering related to financial services. The Finance and Expenditure Committee is calling for submissions on the Credit Contracts and Consumer Finance Amendment Bill. The closing date for submissions is 11.59pm on Monday, 23 June 2025. This bill is one of three that the Finance and Expenditure Committee is considering related to financial services. The other two bills are the Financial Service Providers (Registration and Dispute Resolution) Amendment Bill and the Financial Markets Conduct Amendment Bill. Please take care to upload your submission on the relevant bill. This bill would: transfer regulatory responsibility for credit contracts and consumer finance from the Commerce Commission to the Financial Markets Authority make certain alignments between the Credit Contracts and Consumer Finance Act 2003 and other financial markets legislation to support a consistent and proportionate regulatory system, including transitioning lenders from a certification to a licensing regime remove features of the Credit Contracts and Consumer Finance Act 2003 (such as the due diligence duty for directors and senior managers) that are unnecessary because of, or do not fit as well with, the new regulatory approach (including the adoption of a licensing model) limit the situations in which a creditor's failure to make required initial or variation disclosure can mean that the debtor is not liable for the costs of borrowing. Tell the Finance and Expenditure Committee what you think: Make a submission on the bill by 11.59pm on Monday, 23 June 2025.
Scoop
21-05-2025
- Business
- Scoop
Have Your Say On Credit Contracts And Consumer Finance Amendment Bill
Press Release – The Finance and Expenditure Committee This bill is one of three that the Finance and Expenditure Committee is considering related to financial services. The Finance and Expenditure Committee is calling for submissions on the Credit Contracts and Consumer Finance Amendment Bill. The closing date for submissions is 11.59pm on Monday, 23 June 2025. This bill is one of three that the Finance and Expenditure Committee is considering related to financial services. The other two bills are the Financial Service Providers (Registration and Dispute Resolution) Amendment Bill and the Financial Markets Conduct Amendment Bill. Please take care to upload your submission on the relevant bill. This bill would: transfer regulatory responsibility for credit contracts and consumer finance from the Commerce Commission to the Financial Markets Authority make certain alignments between the Credit Contracts and Consumer Finance Act 2003 and other financial markets legislation to support a consistent and proportionate regulatory system, including transitioning lenders from a certification to a licensing regime remove features of the Credit Contracts and Consumer Finance Act 2003 (such as the due diligence duty for directors and senior managers) that are unnecessary because of, or do not fit as well with, the new regulatory approach (including the adoption of a licensing model) limit the situations in which a creditor's failure to make required initial or variation disclosure can mean that the debtor is not liable for the costs of borrowing. Make a submission on the bill by 11.59pm on Monday, 23 June 2025.
