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

Gordon Campbell: On The Mt Albert Aftermath

Personality politics – Jacinda is great! Jacinda is not so great! – have dominated the coverage of the Labour Party’s fortunes this week...

Still, this is a relatively new and welcome problem for the centre-left. Labour has seemed so bereft of crossover talent for so long that it seems almost embarrassed by this latest development. More>>

 

Conservation: Central Govt Takes Over 1080 Regulation

“This new approach standardises the rules for using such poisons rather than the current system of different rules in different regions. This change will reduce costs and delays for operators, ensure consistent conditions throughout the country, reduce mistakes from misunderstanding rule differences and allow best practice approaches to be used." More>>

ALSO:

Election Entertainments: ACT Has Prison Plan, Greens Have Water Bill

Green Party launches Member’s Bill to protect our freshwater The Green Party has today launched a member’s bill that will keep water from underground sources, called aquifers, safe from pollution and contamination. More>>

ALSO:

2040 Target And Lower Standards: “Swimmable” Rivers Five Times More Likely To Make You Sick

Forest & Bird has condemned the government’s new water quality standards, warning New Zealanders that they lock in current levels of water pollution and allow for a 5-fold increase in the chance of getting sick from swimming in a river. More>>

ALSO:

Immigration: Clampdown On Rogue Employers Good First Step

The Human Trafficking Research Coalition is pleased at the new clampdown on rouge employers who exploit migrants announced by Minister Woodhouse this morning, and believes this is a step in the right direction. More>>

ALSO:

Mayor: 750 New Social And Affordable Homes For Wellington (Over A Decade)

The next stage of Wellington’s Housing Upgrade Programme will see at least 750 new units of social and affordable housing built over the next decade, Mayor Justin Lester has announced. More>>

ALSO:

22/2: Christchurch Quake Memorial Unveiled

A city, a region, a nation and an international community impacted by the Canterbury Earthquakes will come together to mark the sixth anniversary of the deadly quake and dedicate Oi Manawa Canterbury Earthquake National Memorial. More>>

ALSO:


November Quakes:

Gordon Campbell: On The Mana-Maori Party Deal

If the self-interest involved wasn’t so blatant, the electorate deal between the Maori Party and Hone Harawira would be kind of poignant. It’s a bit like seeing the remaining members of Guns’n’Roses or the Eagles back on the road touring the nostalgia circuit… playing all the old hits of Maori unity and kaupapa Maori politics. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news