Researchers call for loan shark regulation
Mon, 20 Aug 2012 2:05p.m.
Loan sharks charging interest rates of up to 400 percent per annum are exploiting Maori, Pacific and low income New Zealanders, Otago University researchers say.
The study by the university's health promotion and policy research unit in Wellington says the impact of loan sharks in low income suburbs of South Auckland and other cities is affecting the health and well-being of New Zealanders.
"Loan sharks target and thrive in low income communities because consumers are borrowing for everyday needs," says lead researcher Associate Professor Louise Signal.
The study recommends tighter regulation of loan sharks, including a cap on interest rates at 48 percent per annum, and introduction of responsible lending requirements.
The study also says more work needs to be done to inform vulnerable communities about financial literacy and the risks involved with loan sharks and borrowing.
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21/08/2012 11:19:23 a.m.
Seriously this needs to be looked at and Now! Loan sharking is a terrible blight on society. On the one hand you can only imagine the devistation it can bring to individuals who simply "did not know" the level of debt they were getting into. I thought in a caring society we were meant to protect the vulnerable. On the other hand we allow individuals with no consience to profit disproportionatley in comparison to their own efforts in inputs. This is virtually a situation where crime does pay and it flies in the face of how 99% of us would wish to see ourselves treated. Please please please tell me the difference between a loan shark and a drug dealer - because they both trade in human despair.
20/08/2012 3:13:00 p.m.
Current High Court drug trial evidence presented that accused (Frosty) willing to pay 80% for 3 month loan of $180K. He's happy about this willing party decision.
20/08/2012 2:54:04 p.m.
Get rid of the pokies would help but oh no they help build convention centres-things like no deposit and no interested for 3yrs etc need looking at too
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