Little Help Against Loan Sharks

Loan sharks are getting nothing more than a slap on the wrist from the National Government, which refuses to introduce legislation to stop them charging very high interest rates, says New Zealand First.

“We are extremely disappointed in the Government for not putting a cap on interest rates as part of the Credit Contracts and Financial Services Law Reform Bill – this is the reason we voted against the committee stage of the Bill in Parliament yesterday,” says Commerce Spokesperson Andrew Williams.

“The most vulnerable people need every assistance to ensure that they are not ripped off by some of these unscrupulous racketeers.

“Commerce Minister Craig Foss could have taken an extra step and put a cap on interest rates as has been done in the United Kingdom, the US, Canada, Japan, Australia and much of Europe.

“United Future leader Peter Dunne has failed to put his representation of the people first, instead doing a flip flop, as he is wont to do, to save his political skin. He has refused to support an amendment to this Bill to include an interest rate cap.

“Three years ago he supported a similar Bill, which included interest rate caps, but now he has backed off.

“With his vote we could have dealt a blow to loan sharks but now all we have is weaker legislation that will have little effect on the extreme interest rates that loan sharks will charge their customers,” says Mr Williams.

ENDS

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