Finsec asks John Key to shoot loan sharks

Finsec asks John Key to shoot loan sharks out of the water

Bank workers’ union Finsec has written to John Key asking him to shoot loan sharks out the water by supporting the Credit Reform (Responsible Lending) Bill.

Finsec General Secretary Andrew Casidy said that the National Government was developing a negative record of siding with banks and financial institutions rather than with customers. “There’s a growing list – not improving consumer protections, failing to re-regulate the banking sector, a limited response to finance sector failures, and not participating in the banking inquiry.”

“National can redeem themselves in this area by supporting Carol Beaumont’s bill to limit the interest rates that our worst loan sharks charge,” said Casidy. “Some of these small lenders are exploiting New Zealanders with their outrageous interest rates – and it is time for Government to start controlling them.”

“John Key has criticised credit card interest rates of 22% - yet some of the providers who would be covered by this bill are charging several hundred percent,” said Casidy. “New Zealand is also out of step with the rest of the world – interest rate restrictions apply in Japan, and many countries in Europe, Africa and South America. Caps are either being implemented or proposed in most of Australia, and in Canada, the USA and UK.”

Casidy said Finsec members saw first-hand the negative impact of debt on borrowers and their families. “National MPs need to stand up for vulnerable low-income borrowers for once. They will get the opportunity when this Bill comes up in next week.”

ENDS

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