Watching out for loan and credit traps

New credit law that takes effect today will provide consumers with better protection when they take out a loan or buy goods on credit, says Consumer Affairs Minister Judith Tizard.

1 April 2005
New credit law that takes effect today will provide consumers with better protection when they take out a loan or buy goods on credit, says Consumer Affairs Minister Judith Tizard.

The Credit Contracts and Consumer Finance Act legislation replaces the Credit Contracts Act 1981 and the Hire Purchase Act 1971.

“Starting today, the Ministry of Consumer Affairs is running a month-long targeted public awareness campaign to inform consumers about the new credit law using the themes of ‘Watch out for credit traps’ and ‘Watch out for loan traps’.

“The campaign focuses on tips about credit and how to watch out you don't get caught in a trap when borrowing money or buying goods on credit,” Judith Tizard said.

During August and September 2004, the Ministry of Consumer Affairs conducted research on consumer credit issues. The research was designed to assist the Ministry develop and deliver a targeted public awareness campaign to inform consumers about the new credit law.

Advertising will specifically target 'at risk' consumers in the main centres. 'At risk' consumers are more likely to be at risk from a bad credit deal, or less likely to be aware of their rights when borrowing.

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Last updated 21 May 2010