Beaumont urges parties to support first reading of Loan Sharks Bill

“Communities, interest groups and families from all over the country have pledged their support for my private members bill aimed at preventing money lenders (loan sharks) from charging excessive interest rates and lending irresponsibly - I now urge members of Parliament to do the same,” Labours spokesperson for Consumer Affairs, Carol Beaumont said today.

“Tomorrow night my private members bill, the Credit Reform (Responsible Lending) Bill, which takes a first step in cracking down on irresponsible loan sharks will have its first reading,” said Carol Beaumont.

“I have had an overwhelmingly positive response from New Zealanders who think it is about time something was to done to regulate wily money lenders. Many shared personal stories of how they and their families were adversely affected by loan sharks charging excessive interest rates on their loan.

“Many loan sharks lend out money at obscene rates, without checking to see whether the borrower will be able to meet the repayment requirements.

“In some cases 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.

“These predatory lenders target groups like Maori and Pacific Island communities, and recent reports have pointed to them targeting students.

“This is unacceptable behaviour. It is time for action. The community wants Parliament to show leadership on this issue and join together to deal with this issue which is causing real hardship to families in already tough economic times.

“I realise my private members bill is a necessary but not a complete fix. But it is a start.

“I am asking all political parties to support this bill to select committee where it can be considered in full. Sadly National and Act seem positioned to vote against my Bill. I was appalled to discover recently that an area of Government work which could have helped with the problems created by Loan Sharks, the review of the Credit Contracts and Consumer Finance Act has been deprioritised with no outcomes until mid next year.

“I believe to do nothing would be irresponsible and a failure in the eyes of our communities,”

“Whatever happens to the Bill I am committed to working with the community to continue my campaign to stop loan sharks and to hold the government accountable for their inaction on this issue,” said Carol Beaumont.

ENDS

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