Beaumont urges MP's to support loan shark Bill

Labour's spokesperson for Consumer Affairs Carol Beaumont urged New Zealanders to write to National MP’s asking them to support her private members Bill, the Credit Reform (Responsible Lending) Bill, during its first reading which is to take place in two weeks time.

“Protecting our most vulnerable New Zealanders and their families is at the heart of my campaign to crackdown on Loan Sharks”, says Carol Beaumont

“Taking the Credit Reform (Responsible Lending) Bill to a select committee would enable MP’s from across the spectrum to hear, first hand, the stories I have been privileged to during this campaign. They would hear how major financial pressure and stress have had such a negative effect on families who have high interest loan shark agreements.

“I am asking people in our communities to write to National MP’s, asking them to support my private members Bill at its first reading.

“The vote is to take place in two weeks time, 26 May 2010.

“It is no secret that some loan sharks lend out money at obscene rates, without checking to see whether the borrower will be able to meet the repayment requirements.

“In some cases people are borrowing to pay off interest and then incurring much higher interest as a result, leaving them in more trouble than they were in the first place. For those unfortunate enough to be trapped in this ever restricting spiral of debt, the consequences can be severe.

“I have been overwhelmed by support. No one denies there is a serious problem and the community expects something to be done. Would like to see cross party support so Parliament can send a strong message to those who prey on vulnerable consumers”, says Carol Beaumont