National lets loan sharks off the hook again

National has missed another opportunity to hold loan sharks to account, says Labour’s Consumer Affairs spokesperson Carol Beaumont.

“While the Responsible Lending Guidelines released today by the Financial Services Federation are a step in the right direction and those involved in creating them are to be congratulated, National is doing nothing to stop these predatory lenders in their tracks.

“The Government’s endorsement of these guidelines represents a half-hearted attempt to look proactive in the face of an increasing and serious problem in the consumer sector,” Carol Beaumont said.

“National is taking credit for other people’s work. The guidelines are voluntary and a promising initiative, but it is the Government’s role to legislate against the excessive behaviour shown by the worst predatory operators.

“We need to ensure that lenders are required to uphold strict criteria for lending, not place the burden back on consumers to hold loan sharks to account.

“This endorsement is just the Government’s way of passing the buck yet again. What is the Government doing to limit excessive interest rates? What is happening with the delayed review of the Credit Contracts and Consumer Finance Act? Consumers are left wanting as the Government sits on its hands.

“In tough economic times when families are struggling to put food on the tables, loan sharks lending irresponsibly and at excessive interest rates are flourishing. Families need a hand, and the community is demanding that the Government steps up and tackles the real issue.

“The Government’s inaction shows that they merely see victims of loan sharks as simply having made more ‘poor choices’. The problem is bigger than this, and it is the Government’s responsibility to finally take some decisive action,” Carol Beaumont said.