The Government has announced it is looking into cracking down on loan sharks and what is described as "predatory behaviour" towards vulnerable people.
Minister of Commerce and Consumer Affairs Kris Faafoi today released the findings of a review of the Credit Contracts and Consumer Finance Act.
Possible action the findings suggest includes caps on interest rates and fees, increased licensing or registration for lenders and strengthening enforcement and penalties for irresponsible lending.
The Minister spoke to a group of loan shark victims in Porirua today and said the findings of the review confirmed what he has been hearing from budget services and vulnerable consumers.
"I've spoken with people who have been given loans that are clearly unaffordable for them, and others who have been lashed with huge penalties and fees. These practices trap people," he said.
The review will now go out for public consultation.
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