New Zealand Credit Contracts and Consumer Finance Act 2003 45A-45L: High-cost consumer credit contracts: total cost cap, no repeat lending within the limits, 0.8 percent daily rate cap, no compound interest, default fee limits and no avoidance

What does 45A-45L require?

For high-cost consumer credit (annual interest of 50 percent or more, or a higher threshold set by regulation), the total costs of borrowing recoverable across the contract and all related contracts are capped at the first advance, the creditor must not enter the contract with a debtor who has had two or more high-cost contracts in the previous 90 days or who defaulted under one in the previous 90 days (with the exceptions the section allows), the rate of charge must not exceed 0.8 percent per day of the amount of credit, interest must not be compounded, default fees must not exceed the prescribed limits, and arrangements designed to avoid the subpart are prohibited.