Loan shark law too late for thousands
new-zealand-labour-party
Fri Apr 19 2013 12:00:00 GMT+1200 (New Zealand Standard Time)
Loan shark law too late for thousands
Friday, 19 April 2013, 11:05 am
Press Release: New Zealand Labour Party
Carol
BEAUMONT
Consumer Rights Spokesperson
19 April 2013 MEDIA STATEMENT
Loan shark law too late for thousands
National has been woefully slow to take action to protect thousands of vulnerable Kiwi families from the obscene interest rates, fees and penalty payments charged by loan sharks, says Carol Beaumont, Labour’s Consumer Rights spokesperson.
Nearly 18 months after announcing legislation to get tough on loan sharks, and committing to progress this “fairly rapidly” if re-elected, John Key's Government has finally introduced the Consumer Credit and Financial Law Reform Bill.
“National has sat on its hands too long, and at this rate it won't have new legislation to protect consumers in place before the next election. That’s despite the then Minister of Consumer Affairs Chris Tremain saying in early 2012 that he “hoped the new legislation will be in effect by 2013.”
“National has known about this problem for years. The Deputy Prime Minister, Bill English said in November 2011 that the behaviour of credit providers was largely unregulated and led to the exploitation of vulnerable people.
“In tough economic times with high unemployment, when families struggle in the face of ever rising prices and low incomes, taking action against loan sharks should have been a priority.
“The delays in introducing this legislation are unconscionable. Loan sharks have been left free to charge excessive rates and fees for far too long. They have caused untold financial harm and stress to thousands of struggling Kiwi families.
Advertisement - scroll to continue reading
“The lack of progress over the last 18 months follows the lack of action in the last term of Parliament when National delayed the review of the Credit Contracts and Consumer Finance Act that had already commenced when they were elected in 2008 and voted down my members’ bill providing for responsible lending provisions and interest caps.
“The Government also dismissed my suggestions for cross party efforts to deal with this scourge, despite enormous public support across the community for action to be taken.
“However, with the introduction of the Consumer Credit and Financial Law Reform’ Bill I reiterate Labour’s commitment to cooperate with any effective measures to deal with loan sharks,” says Carol Beaumont.
Advertisement - scroll to continue reading
a.supporter:hover {background:#EC4438!important;} @media screen and (max-width: 480px) { #byline-block div.byline-block {padding-right:16px;}}
Using Scoop for work?
Scoop is free for personal use, but you’ll need a licence for work use. This is part of our Ethical Paywall and how we fund Scoop. Join today with plans starting from less than $3 per week, plus gain access to exclusive Pro features.
Join Pro Individual Find out more
Find more from New Zealand Labour Party on InfoPages.