Project CCCFA - Update 1
HHA Associates Limited have initiated Project CCCFA to assist you with the upcoming amendments to the NZ CCCFA Act Legislation amendments that will come into effect on 6 June 2015.
HHA Associates Limited, Intersoft Systems Limited and finance clients were invited to attend the Commerce Commission Seminars that were held over the last couple of weeks in Christchurch, Wellington and Auckland.
Jenny and Andrew have come away from this seminar with an understanding of what we need to do to assist our clients to be compliant by 6 June 2015.
The Ministry of Consumer Affairs have released Model Disclosure Documents that incorporate the changes required under the Amendments to the CCCFA. These are currently being reviewed by Intersoft Systems Ltd and any changes that may be required to the sample documents will be incorporated and released. Customised documentation will require reviewing.
- Amendments to the NZ CCCFA Act will come into effect on 6 June 2015.
These are principals that must be met.
- The Responsible Lending Code has also come into effect.
This is not binding or mandatory, but guidance.
- A borrower can cancel the contract if you have not met your disclosure requirements - the lender may not misrepresent that consumer right.
- A lender cannot enforce a contract if disclosure requirements are not met.
It is important to your finance operation that you review these changes along with your current practices and documentation.
THIS WILL AFFECT ALL CONSUMER LENDERS IN NEW ZEALAND
To assist in your preparation for these changes Project CCCFA will assist as follows:
- Review your current Loan / Account Types
- Assist to implement changes
- Checkup of your software and office processes
Stage One: Review
A review with your team to go through your current Loan / Account Types. This can be done by an on-site visit, phone call or on-line
We have a check list to work through with you, and you will be provided with a copy and recommendations of changes required.
This check list includes reviewing any template customisations and Loan / Account types;
- Application Procedures, documentation, recording
- Loan / Account types
- Repossession notifications
- Terms of Business
- Disclosure Statements
- Fees and penalties
- Security Statements
- PPSR Registration
- For any modifications we will advise costings for you to approve.
Stage Two: Implementation
- HHA will work with you to implement the changes required.
- For amendments to Terms of Business – please seek advice from appropriate professionals.
HHA are offering an overall CHECKUP of your system - contact firstname.lastname@example.org for pricing
Where required and depending on the size and complexity of the ledger we are happy to charge on a time and materials basis.
Amendments to customised programs will be charged separately.
We reserve the right to vary these arrangements with consultation with you.
Stage One is the most critical to establish amendments to bring your operation in line with legislation by the 6th
We will be phoning you to book an onsite visit or on-line session. If you have staff holidays or other factors to work around please let us know.
We recommend that you are operating a current Intersoft Systems Ltd releases;
- finPOWER 5.7.49
- finPOWER Connect V2.02.06
- emPOWER 5.3.22
Should you need to be upgraded this is charged on a time and materials basis.
Ideally, availability of a communications line for loading of utilities where it is not possible to travel to clients.
We will need to talk you through the Review by phone and PC Line connections.
Overview - Summary
Evaluation and Criteria of a borrower’s ability to service a Loan will become critical
Software modules that can assist:
Meeting the requirements of the Responsible lending Code and Default management.
- Client Statistics / Application Scoring
Measure and record essential Client Statistics, i.e. Income, Expenses, Assets and Liabilities. Build a set of score cards to determine your Lending Criteria. Does the potential client meet them!!??
Software modules that can assist: