Responsible Lending and Borrowing:

With the new Responsible Lending Code taking effect on 6 June 2015, lenders have an obligation to
lend responsibly and are regulated by the Credit Contracts and Consumer Finance Act and are
guided by the Code of Responsible Lending.

However there were two sides to the equation, borrowers also have an obligation to borrow
responsibly. The voluntary Code of Responsibility Borrowing issue by New Zealand Federation of
Family Budgeting in association with the Financial Services Federation sets out the expectation of
responsible borrowers to ensure borrowers are not borrowing beyond their means,help avoid
stress, penalties interest and fees, repossession, enforcement recovery cost and help them make an
informed decisions.

Fee schedule and Interest Rate apply to Consumer Credit Contract Example