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 Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

Gordon Campbell: On The Navy’s Dealings With Fat Leonard, And Twin Peaks

At an official level, our “she’ll be right” attitude routinely spills over into a keen resentment of anyone who suggests the outcomes may be less than satisfactory… The Navy has now gone one step beyond. It won’t even ask itself whether it did a good job. More>>

ALSO:

NZDF: Fifth Rotation Of Troops Heads To Iraq

The fifth rotation of New Zealand Defence Force troops left today for a six-month mission training Iraqi soldiers. More>>

ALSO:

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East? More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election