Bill targets Loan sharks
(14 May 2010 – New Zealand) New Zealand’s Labour spokesperson for Consumer Affairs, Carol Beaumont, has urged New Zealanders to write to National MP’s asking them to support her private members Bill, the Credit Reform Bill for responsible lending, cracking down on loan sharks.
Taking the Credit Reform Bill to a select committee would enable MP’s from across the spectrum to hear, first hand, how major financial pressure and stress have had such a negative effect on families who have high interest loan shark agreements, Ms Beaumont said.
Protecting the most vulnerable New Zealanders and their families is at the heart of my campaign to crackdown on Loan Sharks, says Carol Beaumont.
It is no secret that some loan sharks lend out money at obscene rates, without checking to see whether the borrower will be able to meet the repayment requirements, Ms Beaumont highlighted.
The Labour member said that in a number of cases some people are borrowing to pay off interest and then incurring much higher interest as a result, leaving them in more trouble than they were in the first place. For those unfortunate enough to be trapped in this ever restricting spiral of debt, the consequences can be severe.
Parliament can send a strong message to those who prey on vulnerable consumers, Ms Beaumont added.
Protecting the most vulnerable New Zealanders and their families is at the heart of my campaign to crackdown on Loan Sharks, says Carol Beaumont.
It is no secret that some loan sharks lend out money at obscene rates, without checking to see whether the borrower will be able to meet the repayment requirements, Ms Beaumont highlighted.
The Labour member said that in a number of cases some people are borrowing to pay off interest and then incurring much higher interest as a result, leaving them in more trouble than they were in the first place. For those unfortunate enough to be trapped in this ever restricting spiral of debt, the consequences can be severe.
Parliament can send a strong message to those who prey on vulnerable consumers, Ms Beaumont added.
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