The New Zealand Bankers’ Association today applauded the prosecution of third tier lender Barry Hunt for breaches of the Credit Contracts and Consumer Finance Act.
“This is a great result. We congratulate the Commerce Commission on a successful prosecution in this case,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“At last year’s Financial Summit the banking industry agreed with regulators and consumer groups that robust enforcement of existing consumer protection law is crucial to cracking down on rogue lenders who prey on vulnerable people. We need to target the problem where it lies.
“Banks are responsible lenders and we’re keen to see all lenders held to the same standards we already observe. It’s about fairness to consumers and applying existing regulations evenly across all lenders,” Hope said.
Hunt was prosecuted for a range of breaches including failing to specify the annual interest rates borrowers would pay, misleading customers about the method used to calculate the interest rate, and failing to disclose his full name and address.
HM Customs and Revenue (United Kingdom)
Bank lobby group the New Zealand Bankers’ Association has hit back at suggestions from property information provider Terralink that mortgagee sales are rising because of a “marked upturn” in the major banks forcing them, saying the total number of mortgagee sales last year was less than 0.2% of the total number of mortgages and there’s “no wholesale move” to sell people out of their homes.
he New Zealand Bankers’ Association revealed today that the number of mortgagee sales was less than 0.2% of the total number of mortgages held by New Zealanders.
In 2011 there were 2263 mortgagee sales, compared to over 1.2 million mortgages. “This is a tiny fraction of total mortgage numbers,” said New Zealand Bankers’ Association chief executive Kirk Hope.
While there were five more mortgagee sales across the country in the first quarter of 2012 compared to the previous peak first quarter of 2010, mortgagee sales have actually declined year on year from 3024 in 2009 to 2263 in 2011.
“It’s important to allay any concerns with a few facts. There is no wholesale move to sell people out of their homes.
“Banks work very hard with customers who find themselves in financial difficulty. People who are having trouble should speak to their bank as soon as possible.
“Banks are responsible lenders. Affordability is something all banks consider when making credit decisions. They ask relevant questions about your circumstances and the possibility of any change to those circumstances. It’s in your interests to be up front with banks so they can best help you meet your needs,” said Hope.
“The benefits to already responsible participants are not at all evident compared to the costs they are being asked to shoulder,” Hope said. While banks could pose a greater structural risk to the economy, Hope said the prudential risks of the sector were already being managed by the Reserve Bank. “At a structural level we’re talking about well regulated entities paying for the regulation of poorly run, failed finance companies.”
New Zealand Bankers’ Association chief executive Kirk Hope said it had no issue with an industry contribution to FMA costs but the levy was disproportionate to the benefits received.
The New Zealand Bankers’ Association today expressed disappointment at the government’s announcement on the way it intends to levy the financial sector to fund the Financial Markets Authority.
“Banks are well-regulated responsible lenders operating at the top end of the market.
“The levies should better reflect the costs and benefits where they actually fall,” said New Zealand Bankers’ Association chief executive Kirk Hope.
“The FMA has an important job to do to crack down on the irresponsible end of the market. The benefits to already responsible participants are not at all evident compared to the costs they are being asked to shoulder,” added Hope.
While homeowners are jumping up and down with excitement over the low mortgage rates, savers aren’t having so much fun. “Balancing the needs and aspirations of borrowers and depositors, within the context of global uncertainty and a very competitive market, provides plenty of challenges for our banks,” Hope says.
Australian and New Zealand Productivity Commissions
Ministry of Consumer Affairs