Our 2011 election manifesto - Labour Party

CONSUMER AFFAIRS
Our vision
Consumer protection laws should give all New Zealanders the confidence to make
purchases in the knowledge that the products and services they consume are safe.
Consumers need access to quality information about the products they consume. New
Zealanders need to know their rights and have access to redress in order to exercise those
rights. New Zealanders should be well-equipped to get the best possible deal. There is a
duty on the government to step in where vulnerable consumers are at risk from unethical or
predatory practices.
Predatory lending
Predatory lending is a major problem and one which continues to grow as families feel the
pressure of increases to the cost of living. Consumer finance becomes predatory when it‟s
carried out unethically by „loan sharks‟, pay day lenders, mobile shops, and used car
dealers. Predatory lenders charge exorbitant interest rates, along with hidden costs in the
form of charges or fees. Such lending is irresponsible and exploitative – often targeting
vulnerable consumers who can ill-afford debt.
Not enough is being done to combat predatory lending. Progress on the Review of the
Credit Contracts and Consumer Finance Act has stalled and there is insufficient legislative
protection for vulnerable consumers at risk from predatory lenders.
Labour will conclude the review of the Credit Contracts and Consumer Finance Act
and introduce legislation to implement the review‟s findings.
Labour will pass legislation within twelve months that deals with the following:
Exorbitant interest rates
Responsible lending provisions
Advertising and promotion, and in particular, celebrity endorsements and
other incentives
Disclosure by lenders of the component costs of loans (e.g. fees, charges,
interests, etc.)
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