The Government takes action on loan sharks
The Government is not call another meeting, but told it needs to take action now on loan sharks. The Government is organizing a finance sector summit where credit company problems can be discussed, Simon Power, Consumer Affairs Minister said. The Government wants to stop companies from preying on vulnerable people and change rules around consumer credit.
It follows announcement of a new text loans service with interest rates as high as 60% yesterday. In areas like South Auckland there’s little protection from dodgy lenders for low income workers, Sio Kasipale, Pacific spokesman for the National Distribution Union said. What’s needed is a cap on interest rates, he added. The Government voted down Labor MP Carol Beaumont’s Credit Reform Bill aimed at cracking down on high interest loans and credit companies last year. But Mr. Power doesn’t think the Government’s dragged its heels on the issue.
They’ll retable the Credit Reform Bill, Phil Goff, as the Labor Leader said. We expect this time the National Party to put their votes behind legislation and we’ll be trying to reintroduce that legislation, Phil Goff said. Simon Power, Minister of Consumer Affairs said before making any commitments, he would have to go back and have another read of Labor’s Bill.(newstalkzb.co.nz)