CCCFA (Credit Contracts and Consumer Finance Act)

The CCCFA is the Credit Contracts and Consumer Finance Act 2003, New Zealand's main law for consumer lending. It sets the rules lenders must follow when they give loans, including car finance.

In plain terms, the CCCFA protects you. It requires lenders to:

• Lend responsibly and check a loan is affordable for you
• Disclose the interest, fees, and total cost clearly before you sign
• Treat you fairly if you hit hardship
• Keep fees reasonable, not excessive

This is the backbone of responsible lending. It is why a good lender asks about your income and expenses, they are legally required to check you can afford the loan.

Who and what it covers

Consumer Protection lists personal loans, mortgages, credit cards, agreed overdrafts, hire purchase and buy now pay later as covered. A car loan for personal use sits squarely inside the Act, whether it comes from a bank, a finance company or a dealer's lender. The Act applies to anyone who provides credit, which includes finance brokers and paid advisers. Credit for business or investment purposes is mostly outside it, apart from the protection against oppressive behaviour.

Your rights before and after you sign

• Disclosure. You must get key information in writing before you sign, including the annual interest rate, all fees, how to cancel and the lender's dispute resolution scheme. A lender that does not disclose properly cannot enforce the contract until it does.
• Cooling-off. You have five working days to cancel, extended to seven if the documents were emailed and nine if posted. If you buy from a dealer and have already taken the car, you can still cancel the credit contract, but you then have 15 working days to pay the cash price. See our page on the car finance cooling-off period.
• Unforeseen hardship. If illness, job loss or a relationship ending makes repayments hard, you can ask for changes such as a longer term or a payment holiday. The lender must acknowledge the request within five working days and decide within 20. You can make only one application on the same grounds within four months.
• Reasonable fees. Credit and early repayment fees must be reasonable and tied to closely related costs. A lender cannot use fees to make a profit.
• Oppressive contracts. A court can step in where contract terms or lender behaviour are extremely unfair or unreasonable, such as pressuring you to borrow more than you can afford.

What has changed in recent years

From 1 December 2021, detailed affordability regulations sat alongside the Act. They were revoked from 31 July 2024 (the high-cost loan regulation 4AO stayed), and the Responsible Lending Code was revised the same day. Lenders still have to make reasonable inquiries and be satisfied you can repay without substantial hardship, so the duty remains. The detail is on our responsible lending page.

The regulator has also changed. The Commerce Commission enforced the CCCFA until 30 June 2026. From 1 July 2026 the Financial Markets Authority (FMA) took over, and cases already under way moved with it. The FMA's page says complaints about lender behaviour can be made through its website or on 0800 434 566. Lenders must also belong to an approved dispute resolution scheme.

What it means when you apply for a car loan

Expect to be asked what the car is for, what you earn and what you spend. That is the law at work, not a hurdle. Before signing, check that the disclosure statement matches what you were told, that the cash price matches the sale contract, and that you understand every fee. Take the paperwork home if you need to. If you are unsure, total cost of credit is the number to compare.

The CCCFA does not mean anyone has to lend to you. Nobody can promise approval, and lenders decide case by case. What it does mean is that a lender who does say yes has to treat you properly. If something goes wrong, our guide to making a car finance complaint shows the steps.

Every lender on our panel operates under the CCCFA. That protection is part of what fair finance means. Check your options with one soft credit check, or get your fair rate. See how it works.

Not sure where you stand? Start with the soft credit check.

Sources

• Consumer Protection NZ: Credit Contracts and Consumer Finance Act
• Consumer Protection NZ: What lenders must do
• Consumer Protection NZ: Loan for your car
• FMA: CCCFA transfer FAQ (page updated 1 July 2026)
• FMA: Changes to credit laws
• FMA: Assessing for affordability
• Credit Contracts and Consumer Finance Act 2003 (legislation.govt.nz)