Litigation firm Cuncannon has urged Parliament’s Finance and Expenditure Committee to rethink the proposed Credit Contracts and Consumer Finance Amendment Bill, warning it could damage access to justice in New Zealand.
Partner Fionnghuala Cuncannon says the Bill’s retrospective elements risk undermining ongoing class actions and deterring litigation funders from backing future claims — crucial for helping everyday New Zealanders seek redress for corporate misconduct.
Cuncannon highlighted the real-world impact of class actions, citing clients who lost homes or had to return to work after investment failures. She stressed that class actions aren’t just legal tools — they’re vital safeguards that hold corporations accountable and help maintain confidence in the market.
If funders lose faith due to legal uncertainty, New Zealand’s standing as a fair and reliable place to invest — in law or otherwise — is at risk. The Committee, she argues, must act to restore trust.
The media release is below –
Cuncannon warns of the CCCFA Amendment Bill’s chilling effect on access to justice
This week litigation and class action firm Cuncannon presented to the Finance and Expenditure Committee on concerns with the Credit Contracts and Consumer Finance Amendment Bill.
The Bill currently proposes to legislate retrospectively and interfere with class proceedings underway.
“It was very important the Committee understood that the Bill as drafted will have a chilling effect on class actions and therefore access to justice in New Zealand,” says partner Fionnghuala Cuncannon.
“I have had the privilege of representing claimants in three class actions. They were hardworking and conscientious New Zealanders trying to do what we as a country need more people to do – invest their savings in something other than the property market.”
“The claimants I have represented have included people who lost their homes and ended up renting in their old age or having to return to work having retired because of the losses suffered due to corporate misconduct.”
Class actions are a way for ordinary people to achieve meaningful redress. They are not a silver bullet, but they are an important part of the work that needs to be done to address access to justice issues in civil cases. Class actions facilitate private enforcement of legal rights, complementing the work of regulators.
“But without funding class actions rarely get off the ground, and litigation funders will be less likely to support class action claims in New Zealand because of the risk that Parliament will legislate retrospectively to undermine claimant rights,” says Fionnghuala.
“While risk is a part of being an investor, the risk should be related to the quality of the investment itself. If we want New Zealanders to have confidence in our capital markets, if we want to effectively deter mass consumer harm, then ordinary Kiwis must have confidence both in the rules of the game, but also that the rules will be enforced when something goes wrong. And just as in the criminal law, we need to remember that the greatest deterrent is not the level of penalty per se. The greatest deterrent for corporate misconduct is the likelihood that someone will find out what you’ve done and be able to do something about it.”
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New Zealand claimants will only be able to access funding, and to do so on the most favourable terms, if litigation funders can invest with confidence.
“That is why Cuncannon is so concerned about this Bill. Both the process to date and the proposed retrospectivity are inconsistent with New Zealand being a premier destination for investment, whether for litigation funding or any other form of investment”, adds Fionnghuala.
The fact that the Bill has even got this far will undermine confidence in investment in New Zealand. The Committee has an important opportunity to correct the course. It can reduce the damage done to New Zealand’s reputation by being clear it will not permit the rules of the game to be changed after play has commenced.
“It is important that the Committee does so because class actions empower New Zealanders to vindicate their legal rights and achieve meaningful redress for corporate misconduct,” says Fionnghuala Cuncannon.
