Law targets dishonest traders

New responsible lending rules came into effect at the beginning of June. The new laws specifically target both loan sharks and mobile truck operators. Two or three mobile truck merchandisers are currently actively operating in the South Wairarapa..
 
Consumer NZ chief executive Sue Chetwin says changes to lending laws were needed to clampdown on traders like mobile truck operators selling goods on credit at inflated prices, often to people who can least afford to pay for them. “To be effective the new laws need to be actively enforced to rein-in lenders who target vulnerable consumers”, she said.
 
“Customers of these traders may not be told the total amount they had to pay and could end up with substantial debts. A packet of cereal bought from a mobile truck operator could cost $40 and a packet of milk powder $35. Credit fees charged on top could add significantly to the price,” Ms Chetwin said.
 
Key changes included introducing responsible lending principles and a code. All lenders – from major banks to mobile truck operators – were covered by the changes and had to ensure their practices were responsible.  
       
Consumers should be made aware of the fact that they would now have a cooling-off period of five, instead of three, working days to cancel a credit contract.