Small payday loan fees, interest to be capped in Faafoi's loan shark clampdown

Tue, 09 Oct 2018

By Paul McBeth Oct. 10 (BusinessDesk) - Small payday loan costs will be capped at 100 percent of the original amount borrowed, as part of Commerce and Consumer Affairs Minister Kris Faafoi's crackdown on predatory lenders. But consumers being fleeced will likely have to wait until 2020 for any change. Announcing the measures with Prime Minister Jacinda Ardern, the minister confirmed plans to cap the accumulated interest and fees on high-cost loans at 100 percent of the principal amount. This means someone who borrows $500 won't pay mo...

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