Regulating Loan Sharks

The Credit Reforms (Responsible Lending) Bill would have regulated loan sharks and capped the interest rates they charge. It would have placed an obligation on loan companies to "reasonably believe" a borrower could repay the loan they were taking out. Unlike many other countries, NZ does not put limits on interest rates and loan sharks target vulnerable families - many who have English as a second language and who do not fully understand the loan contract that they are signing. The bill was voted against by National and ACT who claimed that there was a full review of credit laws happening. 12 months later, we still await the results of that review.