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Loan sharks preying on vulnerable Chch residents – MP

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Wed, 22 Jun 2011 8:24a.m.

Maori Party MP Rahui Katene (NZPA)

Maori Party MP Rahui Katene (NZPA)

Maori Party MP Rahui Katene believes loan sharks are preying on vulnerable residents in Christchurch.

A private members bill which looks to cap interest rates and make the licensing of lenders mandatory has been put forward by National MP Sam Lotu-liga.

Mrs Katene is welcoming changes and says some Christchurch loan sharks are taking advantage of vulnerable residents at every opportunity.

“Things as simple as being able to pay the power and those sorts of things, people have been coming into my office in Aranui have been saying, ‘We’ve been targeted by the loan sharks’ or ‘We’ve taken out a loan with so-and-so, now we can’t pay it back. What do we do?’”

Mr Lotu-liga has the support of Consumer Affairs Minister Simon Power who is holding a summit later this year to discuss the issue.

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Comments

22 Jun 2011 01:43p.m.

deli harris wrote:

why would national and act block a bill that would protect
vunerable people . act and national are power crazy and block anything just to say we are boss and we do what we want to, taxcuts for the rich.

22 Jun 2011 11:13a.m.

Mark wrote:

This is silly, Labour proposed a Bill which was voted down by National and ACT and now they decide to do something. Probably an election year publicity stunt.

22 Jun 2011 10:07a.m.

Peter wrote:

This is from 3 News own website dated 21st July 2010

"The Government has killed a bill that would have regulated loan sharks and capped the interest rates they charge.

Labour MP Carol Beaumont's Credit Reforms (Responsible Lending) Bill was voted down 63-59 in Parliament tonight, with National and ACT opposing it.

Ms Beaumont said New Zealand, unlike many other countries, did not put limits on interest rates and loan sharks targeted the most vulnerable people.

"Stories abound of people hurt by irresponsible lending and excessive interest rates," she said.

"I know of a Tongan family who borrowed $3200 to repair their car...they ended up with no car and still owe almost $10,000." "
What a joke


22 Jun 2011 10:02a.m.

Peter wrote:

This is a joke, Labour introduced a bill last year and National blocked it.

Now, its simple to remove loan sharks, how about raising benefit levels so that these people can afford to pay the bills.

Seriously, these are special circumstances, and these people need financial as well as emotional support.

There are a lot of charity work being done collecting money, where is it going?