New Conservative is concerned about the effect that loan sharks have on the most vulnerable.
We would look at limiting the amount of interest allowed to be charged on any loan to a percentage above the OCR.
We would look at 15% p.a. above OCR as a starting point.
Finance organisations that provide loans to people who have no realistic opportunity to repay the loan will be deemed to have not done due diligence. This would forfeit any right to any security they may have had, placing the onus on the lender to ensure that the loan agreement is feasible.
People on a benefit should not be able to borrow against that benefit.