OneNews 8 June 2015
Labour says new laws introduced to crack down on lenders exploiting people with exorbitant loan contracts doesn’t go far enough.
New laws were introduced and came into effect on Saturday which require lenders to explain the terms of their loans fully to clients.
However, Labour Consumer Affairs spokesperson David Shearer said the new Responsible Lending Code does nothing to regulate the “debt trucks” which travel door to door in lower socio-economic areas.
“Bizarrely, the code is non-binding,” he said in a statement.
Mr Shearer said New Zealand was one of the only Western countries which did not put a limit on interest rate charges.