National MP puts forward bill to make banks disclose break fees at start of contract

National MP puts forward bill to make banks disclose break fees at start of contract
National party MP Aaron Gilmore jumped on the break fee band wagon as he put forward a member's bill to get banks and other credit providers to disclose in a credit contract what the dollar amount of a mortgage break fee would be. However, he admitted that the bill would not resolve the issue of break fee levels or how they were worked out. "The bill will go some way to ensure that New Zealanders who are feeling the pain of the economic downturn are not tied to lending proceedures they can't understand," Gilmore said. "When they sign up for a fixed rate mortgage, the level of break fees they may face will be clear and they will be able to factor this into their decision." __________ * This article was first published yesterday in our daily email subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.  

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