Commerce Minister Kris Faafoi said the economic downturn meant rule changes were needed more quickly. Fears desperate households will resort to crippling high-interest loans during the coronavirus economic crisis has prompted the Government to fast-track legal protections against loan sharks. Compound interest on high interest loans will also be banned, and fees for defaulting on payments will be capped. She said those loan variations included changing some loans to interest-only payments, allowing people to defer payments, make lower repayments, or extend the term of the loan. "New lending has virtually stopped entirely over Alert Level 4 for our members, apart from theodd vehicle loan for essential workers.

Source: Stuff April 30, 2020 02:32 UTC