Credit Contracts and Consumer Finance Act 2003: Proposed Regulations

November 2003

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4. Other Regulations

The regulations detailed above are important to the working of the Act and will be implemented, once finalised following consultation. As mentioned in the introduction, proposed model forms will be developed in the first part of 2004.

Section 138 also provides for regulations to be made in a large number of areas. At this stage no such regulations are intended. However, we are interested in whether stakeholders think any further regulations are necessary or desirable in the interests of certainty and compliance.

Regulations may relate to:

• Exempting any class of credit contract from the definition of consumer credit contract, and thus from the obligations in Part 2 of the Act (such as disclosure, restriction on fees etc).
• Prescribing additional information that must be disclosed by creditors during initial disclosure in relation to consumer credit contracts and consumer leases, or during variation disclosure to debtors or guarantors.
• Providing alternative publication measures for disclosure under s 23 or s 26 in relation to disclosing a change to the amount of an interest rate or a change to the amount of any fee or charge payable. This replaces a provision in the Bill which allowed disclosure of these matters by newspaper advertisement. We are interested in whether regulations to provide the same are appropriate.
• Prescribing a class of change to a credit contract for which disclosure is not required to debtors.
• Prescribing a formula for determining the maximum amount payable by a lessee following early termination of a lease.

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