Proposed changes to the Responsible Lending Code

The Government is reforming the regulatory landscape for financial services in 2 phases. This consultation related to the first phase of these reforms.

On 21 April 2024, the Minister of Commerce and Consumer Affairs announced the revocation of prescriptive affordability regulations. We sought feedback on proposed changes to the Responsible Lending Code to provide guidance to lenders to meet their obligations once the regulations have been revoked. 

Read the submissions received for this consultation

The proposed changes revise Chapter 5 of the Code. These changes are intended to support lenders to assess affordability (and keep appropriate records of these assessments), as required by the Credit Contracts and Consumer Finance Act 2003, without replicating the issues with the affordability regulations to be revoked.

We also consulted on a wider package of financial service reforms. You can find more information about the package of reforms through the below links:

2024 financial services reforms  

Consultation on fit for purpose financial services reform