Dunne breaks his word on loan sharks

United Future Leader Peter Dunne has done the dirty on the victims of loan sharks and backflipped on his previous willingness to support moves to cap excessive interest rates, Labour’s Consumer Rights spokesperson Carol Beaumont says.

“When Peter Dunne previously voted for my Member’s Bill proposing interest caps, he specifically said he was sorry it failed and hoped further progress would be made in the future.

“In spite of those comments he has ruled out supporting Labour’s proposed amendments to the Credit Contracts and Financial Services Reform Bill which will reduce the exorbitant rates loan sharks charge. The Bill is likely to be back in the House for a second reading on Tuesday.

“The Government’s long delayed Bill does not address the issue of capping interest rates of sometimes several hundred per cent.

“The legislation seeks to regulate consumer credit including loans provided by predatory third tier lenders. But National has failed to address out of control interest rates, leaving the Bill out of step with many jurisdictions around the world including the US, the UK, Canada, Japan, Australia and most of Europe.

“National opposes interest rate caps because it claims they could have undesired effects but I challenge the Government to find one country that has repealed such restrictions.

“Initial indications show there would be strong support for Labour’s amendments from other political parties and Peter Dunne’s vote could be crucial.

“These changes would strengthen protections for consumers and rein in the worst excesses of the third tier credit market which has thrived in times of high unemployment and low wages.

“Excessive interest rates lead to a spiral of debt and despair for many families. Labour urges those who want to stop the devastation that extortionate interest rates cause, to tell Peter Dunne he should do the right thing,” Carol Beaumont says.

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