Labour MP wants crackdown on loan sharks

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Thu, 21 May 2009 12:00a.m.

Several countries around the world have laws in place regulating the payday lenders

Several countries around the world have laws in place regulating the payday lenders

Loan sharks charging up to 2000 per cent a year in interest could be facing a crackdown if one opposition MP has his way.

Several countries around the world have laws in place regulating the payday lenders - here in New Zealand there are none.

But Labour MP Charles Chauvel is preparing a private members bill that would put a cap on the interest rates.

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Comments

21 May 2009 02:22p.m.

Deane wrote:

Indeed we have cash converters playing an add of this guy encouraging people to take pay day loans.

Now here are the facts

You get the loan provided you hand over a good of a similar value.

The interest is 30% per month plus administration fees.

Thats 90% interest in 3 months. Totally crazy, and with the recession, I wonder how well they are doing. Again, the poor are exploited.

21 May 2009 01:41p.m.

Peter wrote:

To be honest no-one should be able to charge more than a flat 10% per annum on any loan, including credit cards. Anything more than that is just plain greed.

21 May 2009 10:49a.m.

cyril wrote:

Labour had 3 terms in power to sort this out. Why start now?