The government says it is one step closer to eradicating loan sharks.

It's just released findings from a review of the act and the minister says it confirms that the most vulnerable people are being trapped into appalling debt.

In Minister Kris Faafoi's review, a greater proportion of Māori and Pacific people are disproportionately impacted by poor conduct by lenders, many of whom are in poverty, are illiterate and have a disability.

“In the very short time that I've been the Minister I've almost heard identical stories around the country. So I think I will get a fair idea just to be able to quantify the problem.”

Submission towards the review of Consumer Credit Regulation discussion paper will close August 1.