New loan shark laws unveiled
Among the proposed changes, the bill would make it illegal to lend someone money whose loan repayments would be likely to result in substantial hardship.Given the massive increase in household debt there are a lot of potential prey for lenders.
The legislation would also require complete disclosure of loan terms and extending the period during which borrowers can cancel their loan.
"These will be the biggest changes to consumer credit law in a decade. It is time for a significant shift in lending laws to increase protection for borrowers and target irresponsible lenders," Tremain said.
|Household debt New Zealand |