Carol Beaumont
Consumer Affairs Spokesperson

10 August 2011

Community expects cooperation on loan sharks

On the eve of the third summit in five years on predatory lending, an attempt today to show bipartisan commitment to definitive action was rebuffed in Parliament, says Labour’s spokesperson for Consumer Affairs Carol Beaumont.

“National is more concerned with political one-upmanship on this issue than combatting the adverse effects loan sharks have in our community,” Carol Beaumont said.

“This afternoon in Parliament I sought to have both my Responsible Lending Bill and National MP Peseta Sam Lotu-Iiga’s Money Lenders Bill referred to select committee for scrutiny and public submission. This move was denied.

“Advancing both bills, one addressing interest rate caps and responsible lending, and the other providing for matters like registration and new offences, to select committee would have demonstrated a commitment from the Government to bipartisan progress on the condemnation of loan sharks and their exploitation of our most vulnerable communities.

“The Government again mistakes motion for movement on this issue. Allowing both Bills to progress to select committee would have shown those participating in the Financial Summit held in Auckland tomorrow a real commitment to the fight against predatory lending.

“The community, irrespective of political persuasion, want to see a clamp down on predatory lending. Advancing this legislation would in no way preclude other forms of action arising from the Summit or the revival of the long delayed review of the Credit Contracts and Consumer Finance Act. It simply represents another missed opportunity.

“The Stop Loan Shark campaign I launched early last year has put real scrutiny on the issue of predatory lending. While legislation could already be in place had the government not pre-emptively defeated my Members Bill last year, tomorrow’s summit shows the Government is feeling pressure from the community that action is urgently needed.

“I sincerely hope that real action, including legislation that deals with issues like excessive interest rates, is the outcome of tomorrow’s Summit.

“Labour will cooperate to progress any actions that will rein in loan sharks. Vulnerable consumers have waited long enough,” Carol Beaumont said.

ENDS

© Scoop Media