7 May 2015

Government needs a tighter rein on banks to stop farmers being ripped off

The Green Party congratulates the Commerce Commission on its investigation of banks that misled farmers over rural rate swaps, but says the regulator needs to take a proactive approach to stop farmers from being ripped off in the future.

“It’s good that the Commerce Commission has looked into this issue, and negotiated compensation for farmers, but it’s a case of closing the barn door after the horse has bolted,” said Green Party agriculture spokesperson Steffan Browning.

ANZ has been revealed as the worst offender in a briefing given to Parliament’s Primary Production Select Committee today, ahead of Westpac and ASB, for misleading farmers into rural rate swap loans that trapped them with soaring interest rate increases and high exit fees.

“ANZ has been allowed to get away with ripping off farmers and caused them more stress. Farming is a stressful enough occupation without the big banks taking advantage of them,” Mr Browning said.

“When the Commerce Commission looked into this issue, 256 farmers came forward to complain about rural rate loan swaps. They estimate that’s 10 to 15 per cent of all swap customers. ANZ was demonstrably the worst.

“This revelation that ANZ was the worst offender supports Campaign Against Foreign Control of Aotearoa (CAFCA) awarding ANZ the Roger Award for worst transnational corporation operating in Aotearoa New Zealand,” said Mr Browning.

ENDS

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