Government's Initiative to Protect Against Loan Sharks Due to COVID-19

  • Apr 30, 2020 NZST
  • Team Kalkine
Government's Initiative to Protect Against Loan Sharks Due to COVID-19

The NZ government is amending the Credit Contracts Legislation Amendment Act to protect vulnerable borrowers from high-cost loans that can trap them in debt. The changes were due to start on 1 June 2020.

The improved protections include:

  • If you buy from high-cost lenders, you need not pay anything more than the 100 per cent of the loan principal.
  • No compound interest applicable to high-cost loans.
  • Defaulting payments fees will be limited to NZD 30, conditions apply.

 


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