MPs hunt community loan sharks

Waikato Times 10/05/2010

Labour MP Sue Moroney will host a meeting in Hamilton on Thursday along with Auckland’s Maungakiekie MP Carol Beaumont who has sponsored a bill to cap interest rates for loans. The MPs have also set up a website – – and have asked people to describe their own horror stories with loan sharks.

Ms Moroney said vulnerable Waikato people were being forced to pawn items such as bikes and children’s toys to meet loan repayments loaded with excessive interest rates. “In some cases people are borrowing to pay off interest and then incurring much higher interest as a result, leaving them in more trouble than they were in the first place.” With unemployment at record levels and more families struggling to make ends meet, loan sharks were often seen as the only option, Ms Moroney said.