Wraps - new Act - huge implications

[donna]

Hi All,

Got this in my Inbox -

If you are doing wraps, or contemplating doing wraps, please ensure that you are using a contract that complies with the new CCFA.

The risk of not doing so could be enormous and any remedies you thought were available to you at law may not available.

If you have entered into any wrap agreements since 1 April 2005 using a pre-CCFA agreement, you will need to re-do those agreements again using the new updated agreement, ensuring that your purchasers are kept informed at all times.

It was from Acorn Solutions and I thought many of you would already know about it though maybe some of you do not and therefore ignorance will not be bliss.

Cheers,

Donna

[Dean@Massiveaction]

I can't imagine any one doing wraps now that lease options are established here. I don't know any one who did wraps who would do another. Too much downside compared with lease options, not to mention the possibility of IRD changing the GST loophole they have allowed to date.

[Richcrooks]

Ignorance is not bliss. Whats CCFA please?
Richcrooks

[donna]

Credit Contracts & Consumer Finance Act

Cheers,

Donna

....umm would be interesting to know who is still doing wraps and how successful they are with it.

[Richcrooks]

We have 8 properties 'wrapped' that give us a passive income of over $750/week.
None of our 'clients' would have been able to finance their homes with the Establishment.
Richcrooks

[Richcrooks]

Donna,
Can you give us a link to the source (Acorn Solutions)
Richcrooks

[Wezz]

Wraps

Hi Donna - Many thanks for the info on CCFA. Much appreciated. I agree with Pooomba. With lease options, wraps are a bit redundant. I used to do a few wraps and only have 4 left out of the original 18. The last one I purchased was in April of 2003. The numbers don't work at present.

[Dean@Massiveaction]

I'm currently working through this with my solicitor for lease options. The wording of the wording of the new act makes it not negotiable for someone entering into a lease option and presumably a wrap, to get an independant solicitors sign off on the agreement. My solicitors comment was that this draconian legislation is basically making hte solicitor have to decide whether their client is allowed to buy a house!!
If anyone has any other advice I'd be interested.

[drelly]

I can see what your solicitor is saying Dean but how is it different from a mechanic granting a WOF and assuring you the car is safe to drive on the road? His client can't legally drive a car without his sign off.

cheers,
Dave

[Robot]

Can someone give me the low down on lease options or point me to a link, thx..

[Dean@Massiveaction]

www.globalbusinessideas.com

Dorien and Rineke, they are the bomb.

[Dean@Massiveaction]

Good point Dave but this law is more like asking a mechanic for his written permisssion to buy a car he has never seen or inspected, and being liable if it is a bad buy?

[Cliffy]

I'm currently working through this with my solicitor for lease options.

Hey Dean,

Do you want to share costs/outcomes of this?

[Dean@Massiveaction]

Sure happy to!!