Our 2011 election manifesto - Labour Party

Prohibiting use of certain items as security (e.g. basic household chattels
such as beds, or other items, the loss of which would negatively affect
children), and
Repossession.
The previous Labour Government began the process (continued by the current government)
of regulating financial service providers. While this regime covers consumer finance
providers, there is some evidence that a significant number of consumer finance providers
have not registered under the Financial Service Providers Act and are therefore not
members of a dispute resolution scheme.
Labour is not convinced that consumer finance providers, especially those operating in the
fringe lending market, are properly regulated.
Labour will review the financial service providers regime to determine its
effectiveness in regulating the fringe lending market.
Labour will investigate the possibility of providing the Financial Markets Authority
(FMA) with an overview and monitoring role in the fringe lending area.
New Zealand‟s consumer protection framework relies on good enforcement as well as sound
laws.
Labour will make sure that the Commerce Commission has sufficient resources to
enforce consumer protection laws and determine whether there are currently any
barriers to enforcement that need to be removed.
Social lending
Many low income people face significant barriers to accessing affordable credit when it is
needed for important purchases. Some families seek to circumvent these barriers by using
„loan sharks‟ or other predatory lenders.
Social lending is a broad term, covering loans to not-for-profit organisations and small
business development, but it can also be used for affordable housing or anti-loan shark
programmes. Social lending is still small scale in New Zealand, but there is an opportunity
to use it as a means of minimising opportunities for predatory lenders to target vulnerable
people who need a loan and are unable to get one from mainstream lenders.
Labour will investigate what role the government can play in the development of
social lending schemes.
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