Tough Times See Loan Sharks Continue To Thrive
Tough Times See Loan Sharks Continue To Thrive
The Government’s lack of progress in
addressing child poverty and housing affordability will
force more cash-strapped families to turn to loan sharks to
cover basic living costs, Labour’s Consumer Rights
spokesperson Carol Beaumont says.
“The latest
Salvation Army State of the Nation report, Striking a
Better Balance, describes child poverty and housing
affordability as ‘time bomb’ issues.
“Alongside
that budgeting services are reporting increasing numbers of
families being pushed into the clutches of predatory
lenders.
“A recent example, exposed by the Hamilton
Budgeting Advisory Service, was of clients paying 100 per
cent interest rates. Such excessive charges puts further
financial pressure on families and for some leads to an
ongoing cycle of debt and despair.
“In times of
low wages, high accommodation costs and squeezed family
budgets the need to properly regulate the actions of loan
sharks is obvious.
“At the current rate of progress a Bill introduced last year might just be enacted prior to this year’s election – six years after National was elected and three years after the Government first began promising to get tough on loan sharks.
“A failure
to prioritise regulating loan sharks is consistent with the
Government’s failure to address child poverty and housing
affordability.
“This is a Government that is out of touch and unconcerned about the real impacts of inequality in our country,” Carol Beaumont said.
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