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The
New Zealand Association of Citizens Advice Bureaux has welcomed
the government’s proposed changes to the consumer credit law, saying
it will provide consumers with better information and greater protection
from unscrupulous lenders.
Association
CEO, Nick Toonen, said today the Association’s 88 Citizens Advice
Bureaux will be delighted that consumer credit law will be strengthened.
“Many of our clients are on low incomes and because of the pressures
on their finances, sometimes need credit to get by day to day.
In 2000, our bureaux received over 10,000 enquiries and complaints
about financial matters, including hire purchase, credit charges
and loans, and over 6,000 calls from people facing debt problems.
We see a need for both improved information and stronger enforcement.
“In
our experience, people often go to ‘lenders of last resort’ and
are consequently overburdened by credit payments and high interest
rates. It is vital that consumer credit law puts an obligation
on dealers to better inform consumers on the full and true cost
of credit and ensures that dealers can’t hide crucial details in
the small print. The proposed legislation appears to be heading
in this direction.
Mr
Toonen said the proposal to empower the Commerce Commission so that
it can investigate the activities of lenders, and take action against
lenders who rip people off, is long overdue.
"Bureaux
already work closely with the Commission on a range of consumer
protection and enforcement issues and look forward to continuing
this with the Commission's new role."
Mr
Toonen said the consultation over the changes to the credit law
was well conducted and allowed time for organisations to think and
respond to the various aspects of the proposed changes.
"We
have presented four submissions over the two-year consultation period
and believe the process has had integrity and has therefore delivered
good results," said Mr Toonen.
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