October 11, 2018
House trucks target isolated hamlets
The Commission for Financial Capability is welcoming the crack down on loan sharks and truck shops.
The government yesterday announced a proposed law change to cap the amount of fees and interest that could be paid on a loan to 100 percent of the principal.
There will also be a fit person test for door to door salespeople and truck stop operators, who offer credit at high interest rates.
Peter Cordtz, the commission's head of community programmes, says such operators target those who are least able to carry high debt, such as the case uncovered when the commission visited the far north.
"Iwi groups in Kaeo were saying truck stops were rolling into isolated communities a couple of days before benefits are due loaded with basic food items so people were effectively borrowing to have milk, eggs and bread in the pantry. It's crazy," he says.
While the new rules won't stop demand for emergency high priced credit they should make it harder for the dodgy operators.
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