Stuff.co 27 Sept 2013
Legislation targeting unscrupulous money lenders has had its first reading in Parliament and although it has been generally welcomed across the political spectrum, some question the time it has taken to reach this stage.
The Credit Contracts and Financial Services Law Reform Bill had its first reading on September 17.
The bill has been referred to the Commerce Committee.
The bill rewrites the rules for consumer lending with the aim of offering greater protection to those who are more vulnerable to loan sharks.
Minister of Commerce Craig Foss says vulnerable consumers often have limited financial literacy and lack knowledge of their rights.
“This bill is about protecting vulnerable consumers,” Mr Foss says.
“We know that, unfortunately, all sorts of people can be vulnerable because they lack financial literacy.