Yang Jian: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeYang Jian: Questions for Oral Answer — Questions to Ministers[Sitting date: 26 September 2013. Volume:693;Page:13789. Text is incorporated into the Bound Volume.]12.Dr JIAN YANG (National) to theMinister of Consumer Affairs: How will the Credit Contracts and Financial Services Law Reform Bill target loan sharks and protect New Zealand consumers?Hon CRAIG FOSS (Minister of Consumer Affairs): The Credit Contracts and Financial Services Law Reform Bill is the biggest overhaul of consumer credit law in a decade and will make wide-ranging changes to consumer credit and repossession law. The changes represent a crack-down on unscrupulous lenders who prey on desperate people and leave them and their families trapped in a spiral of debt. These changes will usher in an era where lenders must act responsibly where consumers must have the information they need and where there are significant consequences for those who breach the law. Rewriting the rules for consumer lending forms an important part of the Business Growth Agenda of this Government to help boost trust and confidence in our financial markets.Dr Jian Yang: What changes are proposed in this bill to ensure more informed borrowers and more responsible lenders?Hon CRAIG FOSS: The Credit Contracts and Financial Services Law Reform Bill introduces a wide range of changes to ensure more informed borrowers and responsible lenders. Lenders will have to take responsibility for the likely effect of the credit decisions they make for their customers. There will be better controls against misleading deceptive or confusing advertising of credit. I welcome cross-party support for this bill and I encourage individuals and organisations to make submissions as it goes through its select committee process.Carol Beaumont: What analysis has he undertaken of the damage caused to vulnerable families by the Government’s failure to deal with the issue of inadequate consumer credit laws and to better regulate loan sharks truck shops and payday lenders over the last 5 years?Hon CRAIG FOSS: I can assure that member that this bill absolutely targets that behaviour of some individuals which sadly exploits the vulnerabilities of many New Zealanders.Carol Beaumont: I raise a point of order Mr Speaker. I asked “What analysis”—Mr SPEAKER: Order! Can the member please repeat the question? It was not answered.Carol Beaumont: What analysis has he undertaken of the damage caused to vulnerable families by the Government’s failure to deal with the issue of inadequate consumer credit laws and to better regulate loan sharks truck shops and payday lenders over the last 5 years?Hon CRAIG FOSS: Specifically no specific analysis but the identification of the problem has been there for quite some time. Thus this bill has been introduced and is before a select committee.Carol Beaumont: Why has he ignored the experience of the increasing number of overseas jurisdictions that provide for interest rate controls and failed to provide for such controls in the Credit Contracts and Financial Services Law Reform Bill; is he genuine in his suggestion that people submit on this issue anyway?Hon CRAIG FOSS: I am genuine.