The retrospective aspect of recently proposed amendments to the Credit Contracts and Consumer Finance Act 2003 (CCCF) has sparked debate, largely because the proposed changes adversely impact existing claims brought in a class action against ASB and ANZ in the High Court.
In this article we set out the background to the controversy and the competing views.
We conclude by supporting the proposed changes. The CCCFA provisions on which the claims are based is bad law and could lead to an unexpected windfall for many participants. The changes do not extinguish legitimate claims for compensation and instead protect lenders from unfair punishment. While the timing of the proposed changes is not ideal, that does not mean bad law should remain on the statute books.
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It seems to me that the state (the party that erred with its legislation) should compensate the plaintiffs for the confiscation of their property rights. This would be consistent with ACT’s regulatory standards bill.