Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Interest rate caps needed to rein in loan sharks

8 May, 2014

Interest rate caps needed to rein in loan sharks

Without interest rate caps imposed on them, loan sharks will still bite, FIRST Union says.

Parliament is this afternoon expected to consider the Credit Contracts and Financial Services Law Reform Bill, as it goes through committee stages.

FIRST Union organiser Jerome Mika said the proposed law included some positive steps, including a responsible lending code, increased disclosure requirements, harsher penalties and mandatory licencing of repossession agents.

“This is a really good start, but low income pacific workers and beneficiaries in areas like South Auckland, who have been poorly served by inadequate protections around dodgy lenders, will still be at considerable risk without controls on the interest rates loan sharks can charge.”

“There has been an explosion of loan sharks and pay day lenders since the financial crisis, especially online providers which people can access through their smart phones.”

“Loan sharks cannot be allowed to charge interest rates of in some cases several hundred percent.”

“What is desperately needed is a cap on interest rates charged by fringe lenders, and we urge Parliament to support Carol Beaumont’s amendments to the bill which would provide for this. Other countries do this, and there is no reason why we can’t.”

“We support the changes in this Bill. Ultimately though, we want to get rid of the demand for loan sharks and pay day lenders altogether.”

“Low income workers need both better wages and should have a right to more regular pay, for example weekly rather than fortnightly wage payments, as well as access to credit on fair and reasonable rates,” Jerome Mika said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Anzac Day:


Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence.

The changes follow the resignations from Cabinet of Hekia Parata and Murray McCully.

In other changes Simon Bridges has been appointed Leader of the House and Nicky Wagner has been made Minister supporting Greater Christchurch Regeneration. More>>

 

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Health Workers Respond: People's Mental Health Report Released

The People's Mental Health Review reinforces a recent YesWeCare.nz survey of 6,000 health workers, which found nine in 10 believe they don't have the staff or resources to deliver the care Kiwis need when they need it. More>>

ALSO:

More Mental Health:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Gordon Campbell: On The Aged-Care Settlement

Until yesterday, a National government has always been the sworn enemy of women seeking justice in the workplace, in the face of gender-based pay discrimination. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news