The New Zealand government’s move to ensure consistent protection for anyone wishing to borrow money is endorsed by financial firm Yes Finance.

“Our goal is to make sure your loan works for you and reduces your debt,” says Peter Steel, director of Yes Finance.

Unaffordable loans

According to Trade and Consumer Affairs Minister David Clark, around 20 percent of the repayment difficulties faced by New Zealand borrowers are believed to be due to the cost of high debt levels.

The damage and stress caused by unaffordable and unmanageable debt is severe and lasting. For this reason, the New Zealand government wants to help all lenders better understand their customers’ situation before approving a loan.

Terms & Conditions

Before approving a loan, all lenders are required to:

• Consistently educate yourself about the borrower’s needs and purpose to make sure the loan product is right.

• Check the borrower’s income and expenses to make sure that repayments don’t put the borrower in a difficult position.

“These requirements are part of a package of changes designed to protect consumers from high cost loans and unaffordable debt,” adds Peter.


Earlier this year, the Ministry of Enterprise, Innovation and Employment (MBIE) released an updated guide to help lenders comply with their responsible lending obligations. The Responsible Lending Code has been updated to reflect changes in consumer credit legislation.

The responsible credit code

Changes to this code include describing what lenders should do when their customers miss payments, exceed their credit limit, or experience unforeseen financial hardship.

Other changes to the Code include guidance on new legal requirements regarding:

• Announcements, loans and other consumer credit contracts.

• Record keeping requirements for lenders on how they check if a loan is likely suitable and affordable for a borrower.

• Help borrowers make informed decisions when taking out a new loan online.

The latest lending requirements will come into effect on October 1, 2021 under the Credit and Consumer Finance Contracts Amendments (Lender Adequacy and Affordability Surveys) Regulations 2020.

Yes Finance welcomes the fact that the requirements for businesses providing loans to consumers are clear and consistent. Yes Finance strives to provide the best responsible lending services to all of its clients, with competitive interest rates, flexible terms and a loan policy perfectly tailored to the needs of its clients.

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