Government inaction means thousands hurt by loan sharks
new-zealand-labour-party
Sun Apr 14 2013 12:00:00 GMT+1200 (New Zealand Standard Time)
Government inaction means thousands hurt by loan sharks
Sunday, 14 April 2013, 11:56 am
Press Release: New Zealand Labour Party
Carol BEAUMONT
Consumer Rights and Standards Spokesperson
14 April 2013
MEDIA STATEMENT
Government inaction means thousands hurt by loan sharks
Thousands of families have suffered financial hardship because of this Government’s failure to deliver on its election promise to introduce legislation dealing with predatory loan sharks, says Labour’s Consumer Rights and Standards Spokesperson Carol Beaumont.
“The community wants action taken against the targeting of vulnerable consumers. There have been widespread demands for a new law to crackdown on the issuing of unfair loans with high interest rates, default payments, unreasonable fees and security conditions.
“The 2011 election seemed to finally focus National’s attention on the issue when they promised during the campaign to change the consumer credit laws to target loan sharks.
“This was seen as cynical politics at the time because of National’s record on the issue. It had delayed the review of the Credit Contracts and Consumer Finance Act initiated by Labour and voted down my Members’ Bill providing for responsible lending provisions and interest caps.
“So it’s perhaps no surprise that 18 months down the track, National still hasn’t taken action. It has failed to introduce legislation and there’s no sign of it being in effect this year either.
“National MPs claim tougher loan shark laws are a priority. In April last year, former Consumer Affairs Minister Chris Tremain said new legislation would be in effect by mid 2013. By October, new Minister Simon Bridges was indicating the Bill would be introduced later in 2012 or early 2013.
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“But it still hasn’t happened. Legislation to deal with loan sharks should be a priority especially as economic times remain tough for most New Zealanders. Why is helping vulnerable consumers and stopping unscrupulous loan sharks not a priority for National?
“My Stop Loan Sharks campaign showed that there is widespread desire across the political spectrum to deal with loan sharks. Internationally many other countries have taken action to address this blight. Labour has consistently said that we will cooperate with law changes targeting loan sharks. I reiterate this commitment.
“The Government must explain why they have delayed acting and make effective legislation a priority,” said Carol Beaumont.
ENDS
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