August 31, 2015
Tough penalties proposed for truck predators
Labour's consumer affairs spokesperson says it's for the Government to reform the laws around trucks shops.
David Shearer says a Commerce Commission report that 31 of the 32 companies running truck shops had breached consumer protection laws shows that the current regulatory framework isn't working.
He says the trucks cruise low income areas where operators use high pressure sales tactics to get people to buy goods on time payment.
They end up paying three or four times the cost of the item, as well as incurring massive interest payment and fees if they miss payments.
"First of all I want to see the law changed so we can cap interest rates and outrageous price gouging. The second thing I want to see is I want to see every one of those trucks licensed and a set of operating procedures so they have to operate properly, and if they violate them, you take away their licence and you basically confiscate their goods. Simple as that," Mr Shearer says.
He says the debt created by truck companies creates huge strain on the finances of families that are already struggling.
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