CTU backs loan sharks Bill 21.7.10

The Government should support Carol Beaumont’s loan sharks Bill through to second reading, said the CTU today.

CTU Economist and Policy Director Bill Rosenberg said, “The Government should either give an undertaking that it will incorporate the principles of this bill into its own legislation or support the Consumer Credit (Responsible Lending) Bill so that the issues can be thoroughly discussed.”

“There is no good moral reason why it should not send this bill to Select Committee where any problems with its approach can be addressed.”

“Every day that loan sharks are allowed to continue charging vulnerable low-paid people obscene interest rates is another story of exploitation of their already difficult circumstances. The vulnerability and need of low paid people has been increased by the recession.”

“The Government’s tax cuts largely bypassed low-income people, but they will be facing big increases in costs over the next year. The least the Government can do is regulate against exploitative lending practices.”

For further information contact:

Bill Rosenberg, Economist and Policy Director, CTU
04 802 3815 / 021 637 991