11 Mar 2010

Member's bill targets loan sharks

10:19 pm on 11 March 2010

A Labour Party MP is trying to build support for her bill to crack down on loan sharks and set maximum interest rates on lending.

Carol Beaumont's bill on credit reform would also require lenders to reasonably believe the borrower will be able to repay the loan.

She says with unemployment levels high, vulnerable people need to be protected from paying excessive interest rates, which she says can run into triple figures or more.

Ms Beaumont wants the bill, which has its first reading at the end of April, to get enough support to go to a select committee so issues like setting maximum interest rates can be investigated.