Following a review of the Credit Contracts and Consumer Finance Act, New Zealand's new Labour-led government has released a discussion paper outlining plans to tighten up consumer lending regulation.The proposed changes include capping interest rates and fees, tightening up licensing and registration requirements for lenders, and tougher enforcement and penalties for irresponsible lending. Regulations around affordability assessments and advertising are also likely to become tougher and more prescriptive.Commerce and Consumer Affairs Minister Kris Faafoi said the findings of the review showed 2015 amendments to the CCCFA, under the previous National Party-led government, did not go far enough."I've spoken with people who have been given loans that are clearly unaffordable for them, and others who have been lashed with huge penalties and fees. These practices trap people … in an appalling debt spiral that is very difficult to get out of," Faafoi said."We need to ensure the regulatory settings are right to stop the practices that get people into these terrible situations."The government is also concerned at the increasing number of "shop trucks" which cruise around low income suburbs offering everything from electronics and clothes to basic food items at vastly inflated prices, on credit. "Continued predatory behaviour by mobile traders is also considered, as is extension of the Act to cover credit not currently covered including after pay options," Faafoi said.Submissions on the discussion paper close on 1 August.Faafoi is seen as a high performer among a Cabinet lacking in depth and experience.Earlier this week he indicated he would intervene if payment service providers didn't work harder on interchange fees and merchant service fees. He told the PaymentsNZ conference he wanted an ongoing commitment from banks to increase transparency of costs with retail payments and ensuring an affordable debit option remained available.