Ngā Tāngata Microfinance Emphasises Importance of CCCFA and Responsible Lending to Protect Vulnerable Borrowers
Ngā Tāngata Microfinance, a non-profit organization committed to supporting financially vulnerable New Zealanders, welcomes the Commerce Commission’s recent penalty against a lender charging up to 182.5% interest on high-cost loans. The Commission has imposed a $200,000 penalty, underscoring the critical role of the Credit Contracts and Consumer Finance Act (CCCFA) and responsible lending practices in protecting vulnerable borrowers from exploitative financial practices.
Considering the penalty Interest charged by that lender, Ngā Tāngata Microfinance reaffirms its commitment to offering ethical, interest-free loans designed to provide New Zealanders with a “hand up” rather than a “hand-out.” The organisation also stresses the vital importance of robust regulatory frameworks like the CCCFA to prevent predatory lending practices that can trap vulnerable borrowers in cycles of debt. See full Press Release below: