Action planned to tackle loan sharks, with Winston Peters on board

September 17, 2018

Consumer Affairs Minister Kris Faafoi said Winston Peters is on board in clamping down on predatory lending.

The Government plans to take action on loan sharks, and Winston Peters is reportedly on board. 

On TVNZ1's Q+A host Corin Dann asked if there would be a cap introduced on the size of loans. 

"We'll be taking it to Cabinet pretty soon, I hope, given some of the damage that is done to those vulnerable consumers by predatory lenders.

"We're going to take some action there to make sure that can't happen anymore."

He said he "absolutely" has Winston Peters' support. 

The Government announced it intended to crack down on loan sharks in June, with measures including capping interest rates and fees, increased licensing or registration for lenders and strengthening enforcement and penalties for irresponsible lending.

Victims of so-called loan sharks gathered today to speak to Minister of Commerce Kris Faafoi.

Mr Faafoi told 1 NEWS previously in some situations "a $500 loan can become several thousand because people can't pay them back, it takes those consumers far too long to get out of the debt spiral and they need protection". 

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