Class action against banks nobbled by controversial retrospective legislation

The government has defended the use of retrospective legislation that effectively kneecaps a class action now underway against two major banks, prompting Labour to accuse it of undermining the rule of law to please “silver-tongued lobbyists”.

Consumer NZ says the situation surrounding the legislation is a mess, while the New Zealand Banking Association (NZBA) says changes are needed to avoid “excessive consequences” for its members.

The Credit Contracts and Consumer Finance Amendment (CCCFA) Bill passed its first reading last week, largely overshadowed by the Budget, the fiery debate about performing the haka in Parliament and the ongoing row over changes to the pay equity regime.