Commerce Minister must clear the way for P2P lending
ACT Leader David Seymour is calling on the Minister of Commerce to allow peer-to-peer platforms flexibility about who
they charge for their service.
“A country of our size and location must be a more nimble regulator than other countries, especially in a time of rapid
technological change. It was disappointing to see the Minister of Commerce, under questioning in the House, had no
answers other than that he’s ‘considering the options’, especially considering the sector brought this to his attention
four months ago.
“Badly-drafted red tape and an overzealous regulator is threatening the growth of peer-to-peer lending. MBIE is advising
the Minister to apply fee restrictions to these companies as if they are traditional lenders, despite the fact that they
are not actually lenders, but intermediaries connecting personal lenders with borrowers.
“This stands in stark contrast with the UK, US, and Australia, where peer-to-peer lenders are using models that the
Commerce Commission objects to, where platforms can charge fees to borrowers as well as lenders.
“The Government would be foolish to scare off peer-to-peer platforms like Harmoney, PledgeMe, and Squirrel Money when
the global industry is set to be worth $500 billion by 2025. If we don’t liberalise now we risk being left behind by the
sector entirely.
“The Commerce Commission has spent millions trying to interpret the Credit Contracts & Consumer Finance Act, while peer-to-peer platforms tear their hair out dealing with the uncertainty and (in the case of
Harmoney) court costs.
“Rather than waiting for a costly and elongated test case, the Minister should amend the law and bring us in line with
overseas jurisdictions.”
ENDS