The government has relaxed consumer lending rules blamed for making it harder for people and businesses to get credit, but there are already complaints they do not go far enough.
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Changes to the Credit Contracts and Consumer Finance Act (CCCFA) have been published in the official Gazette to come into force on 7 July.
They are in line with changes to the Responsible Lending Code [https://www.rnz.co.nz/news/business/463104/lending-rules-that-hit-credit-approvals-to-be-eased-government-announces
approved by the government in March] after a chorus of complaint about the unintended consequences of the act.
The CCCFA came into force last December and aimed to protect vulnerable borrowers from loans with punishing conditions and interest rates which they could not afford.
But almost immediately there were complaints the rules were too restrictive, the information required too intrusive and unreasonable, and the time taken to process applications too long.
It was also blamed for leading to a drop in lending and a credit crunch.
The changes clarify what lenders need to ask and where they should get the information when assessing a borrower's ability to service a loan.
Lenders will not need to check current spending from recent transactions when assessing future spending, nor will current savings and investments be regarded as outgoings.
The CCCFA changes were was largely responsible for a drop in lending, saying there were seasonal influences and other factors.
However, the Bankers' Association said the changes were not enough and would alter little.
"The government's rushed attempt to fix the problem hasn't made things easier for consumers seeking credit. Instead, it's raised hopes of a solution that hasn't been delivered," Association chief executive Roger Beaumont said.
He expected the changes would mean little for most borrowers.
"That's because most of the existing requirements remain in place, meaning customers will still have to provide detailed information about their spending, resulting in a more painstaking process and more loan applications being declined than before the December rule change."
Beaumont said the one-size fits all approach for all lenders and all loan types meant the banks did not have the same discretion or flexibility as before.
He said they would wait for the outcome of the broader review being done by the Council of Financial Regulators.