Proposed Legislation Changes
CCFA changes akin to PPSR changes
The current NZ Government has signaled some serious changes to the Credit Contracts and Consumer Finance Act could be in the wind, as they look to tackle their social agenda. Detail of any changes has been limited to date, but early commentary has indicated that an interest and fee cap may be on the way, along with an increase in Responsible Lending Obligations: as well as a raft of other measures. Even though there is currently no detail, it is likely that any changes may not be capable of being catered for in the current finPOWER 5 platform. It is important to note that, as with the PPSR, any changes in legislative requirements for the NZ market will only be able to be undertaken in FinPowerConnect. Therefore, any clients wanting to comply with any changes to the CCCFA will most likely need to be on the latest version.
There are still nearly 150 clients using finPOWER 5 in NZ, and history has shown us that it will be a big project to get them all converted in time for any proposed changes. We are aware that a number of clients are running down their books and have no interest in upgrading, but at the same time there are a good number of clients that will be forced to upgrade with any changes to the CCCFA. It is worthwhile having these conversations with your remaining finPOWER 5 clients now and letting them know of the potential impact of the CCCFA changes, and looking to start scheduling in their conversions while there is the luxury of time!
Refer Intersoft Systems newsletter
Item of Interest – further credit contracts legislation amendments proposed for early 2020
Bill 86627 is being sent to select committee. It potentially affects the total cost of lending and proposes shifting responsibility from Borrower to Lender. The 40 page draft bill is here.
Follow its passage here:
Do your Contract Terms and Conditions explain your structure process correctly.
Why not review them today with your lawyer for peace of mind.
Is Contractual overdue and Overdue the same? No!
Contractual Overdue is AS PER the original agreement (schedule) made with the client.
Overdue reflects amendments that have been made to the agreement - the scheduled payments, maturity date, extension etc.
To further discuss and ensure you are using the overdue calculations best suited to your business, please contact HHA.
Does the Payment Arrangement affect overdues?
The payment arrangements affect the overdues when adding additional payments or overriding existing payments.
Please contact us for a fact sheet to suit your requirements.
Considerations when you are requested to amend payment frequencies and / or values:
Know the best options before you process the request:
- Refinance - the replacement of an existing Account with a new Account allowing complete different terms.
- Restructure - the process of adjusting existing fixed Term Loan conditions but retaining existing account structure
- Payment Arrangement - payments can be overridden, additional payment added, payment promises for future date made
New version of finPOWER connect is available (Version 3.01.12)
Please contact HHA to upgrade
It is important to keep up with the new versions to ensure you are up to date with the latest developments, please read more to view modification.
Remember, its often the little things that make the biggest difference to efficiencies:
e.g. The new version is now updated with key permission which allows the owner of the log the ability to edit their own logs.