Kiwi Party Supports Loan Shark Bill

Kiwi Party finance spokesperson and former MP Gordon Copeland today signalled his strong support for Carol Beaumont’s Consumers Credit (Responsible Lending) Bill.

“I have advocated for such a Bill for some time because I am very concerned that many people are being unwittingly trapped into impossible debt situations because they failed to understand the interest burden they were taking on when borrowing from their local “fast loan approval” finance company”, said Mr Copeland. “Such people, who are often borrowing in real need to meet an unexpected expense, can find themselves financially enslaved for years to come”.

“But a maximum interest rate is only part of the solution. The legislation should also ensure that all borrowers are given accurate information about the annual interest rate and a worked example of how that interest will compound over time.

“We must bring an end to interest rates expressed as “8% per week” without further elaboration. What does that mean? Does it mean 416% per annum (8x52), or a compounding rate of 5,370% per annum?!

“I call on all MPs to support the first reading of the Bill today so that it can be sent to Select Committee”, said Copeland.

ENDS

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