Sir John Anderson to chair Financial Summit

Sir John Anderson will chair the Government's Financial Summit which will target unscrupulous credit companies, Consumer Affairs Minister Simon Power announced today.

The summit will bring together community groups, budgeting services, banks, and credit companies to look at ways of tackling the problem of irresponsible lending. It will be held in Auckland on August 11.

Mr Power said he was delighted Sir John Anderson had agreed to chair the summit.

"His vast experience and expertise across both the community and financial sectors will add greatly to what we are trying to achieve.

"Having him at the helm will help ensure this summit results in action."

Invitations are being sent today to about 500 people who were selected to ensure all sectors of the community are represented.

Attendees will split into groups to discuss areas including responsible lending, credit advertising, social and community lending, responsible debt management, financial literacy, and dispute resolution.

Mr Power said he wants the summit to achieve three things:

• An agreed action plan with initiatives that aim to help vulnerable people trapped in a debt spiral caused by lack of financial literacy, consumer choice and high, compounding interest rates.
• To send a clear message to all financial sector providers – from those that are larger and more mainstream to those that are small, third tier – that they all need to practise and commit to responsible lending and responsible consumer debt management.
• To come out with a clear direction about how best the government can contribute to improving the financial literacy of New Zealanders.

“We need to close the gaps in the system that allow loan sharks to take advantage of unwary consumers.

"The preying on of vulnerable people by unscrupulous lenders has to stop.

"Although I will approach the discussions with an open mind, I expect outcomes that address irresponsible lending.

"The key question that needs to be asked is whether the Credit Contracts and Consumer Finance Act needs to be amended to provide more protection for consumers – including from irresponsible lending – or whether the same outcomes can be obtained from voluntary industry initiatives.

"I want to hear from those in the community who are working with people who find themselves facing exorbitant interest rates."