Loan shark crackdown meetings begin
Fri, 27 Apr 2012 1:46p.m.
By 3 News online staff
Next week will see the start of a crackdown on loan sharks, as Consumer Affairs Minister Simon Bridges begins a series of meetings to discuss tougher loan shark laws.
Mr Bridges will meet with community and industry groups over the next fortnight to discuss the draft Credit Contracts and Consumer Finance Amendment Bill, beginning with a meeting in Wellington on Monday.
Meetings will be held in Auckland and Christchurch on May 7.
Government has created a “comprehensive package” to cut down on loan sharks and give borrowers more protection, Mr Bridges says.
“There are too many unscrupulous lenders, operating in some of our poorest communities and leaving families trapped in a spiral of debt,” he says.
“This draft law represents the biggest change to consumer credit legislation in a decade and it’s important to get it right.”
The consultation period ends on May 25, which Mr Bridges says will “give people more of a chance to have their say”. During this period members of the public are able to make a submission to the Ministry of Consumer Affairs.
Key changes in the draft law include making it illegal to lend money to someone when the repayments would result in “substantial hardship”, extending the ‘cooling off’ period where borrowers can cancel their loan, and better controls against misleading advertising.
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