18 Aug 2007

NZ government clamps down on some credit suppliers

10:35 am on 18 August 2007

The New Zealand Minister for Pacific Island Affairs, Phil Goff, says stronger enforcement of the Credit Contracts and Consumer Finance Act will help curb exploitative behaviour by some credit suppliers.

His comments follow a report released Consumer Affairs and Social Development into borrowing by pacific consumers from fringe credit providers.

Mr Goff says a major concern highlighted by the report is that borrowing leaves many exposed to high cost credit and potentially exploitative credit contracts.

But he says work being done through the TrueCost campaign will assist families.

"To ensure that there is disclosure that people can find out what the real cost of the money is and what the catch points are in the deals they enter into to."

Phil Goff.

Truecost resources include fact sheets and loan checklists in Samoan and Tongan.