CPAG totally supports Carol Beaumont's bill to regulate fringe lenders. (The Credit Finances (Responsible Lending) Bill).

Loan sharks' charging outrageous interest rates is one of the cruelest aspects of an unregulated lending sector. Loan sharks are expert at preying on vulnerable families. As the ongoing effects of the recession continue to bite and households struggle to meet every day bills, these sharks are enjoying a feeding frenzy!

"Capping interest rates at a reasonable level and ensuring lenders follow ethical lending practices would be significant steps in halting this widespread problem. Currently, legally, loan sharks are charging 60% to 600% interest and more. These obscene practices impact hugely on our poorest children. "Said Dr Claire Dale CPAG's Economics spokesperson. "New Zealand lags way behind other countries in setting in place regulations to deal with these loan sharks. Parliament now has a real opportunity to step up and provide real protection for borrowers who are forced into these unsustainable loans. Child Poverty Action Group urges every MP to support this Bill."