Lenders to the poorest segments of society are eyeing borrowers' KiwiSaver as a way of getting their loans repaid, the Commerce Commission has been told.
The commission is tasked with policing the Credit Contracts and Consumer Finance Act, which lenders must follow. It is designed to make sure they lend responsibly only to people who can afford repayments.
Complaints to the commission that lenders had broken the law rose to 242 in the 12 months to the end of June, from 164 the previous year, the commission said in its Consumer Issues report, released today.
And among the accusations levelled at finance companies is that some believed they could raid borrowers' KiwiSaver super savings, if people fell on hard times and could not repay their loans.
from
http://www.stuff.co.nz/business/money/96785978/Lower-tier-lenders-eye-KiwiSaver-for-repayments-budget-agencies-claim
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