The Credit Contracts and Consumer Finance Act (CCCFA)

Every time you borrow money to purchase goods or services you are protected by the Credit Contracts and Consumer Finance Act (CCCFA) also known as the ‘triple C F A’.

This occurs when you:

• purchase something on credit called a credit sale (previously called hire purchase)
• get a loan, mortgage, or an arranged overdraft from a bank
• buy a car on credit
• use a credit card or a store card
• purchase goods from a mobile trader that includes interest and/or fees.

The purpose of the act is to protect the consumer and covers such things as:

• lender responsibility
• what information needs to be disclosed
• credit fees, penalties, and other costs
• what happens in unforeseen hardship
• repossession rules.

This is an important act because it provides powerful consumer protections when people borrow money. The availability of credit has significantly increased in New Zealand in recent years. This has created problems for many people, including many of our clients. The act contains provisions that are particularly useful in a mentors work when dealing with debt.