Increased stress and hardship await families if the Coalition Government does not address the needs of those on low incomes, according to Ngā Tāngata Microfinance and Child Poverty Action Group.

CPAG and Ngā Tāngata Microfinance endorse the Salvation Army’s call for tougher regulations on debt collectors and mechanisms to provide forgiveness or waivers for debts that are “effectively unrepayable”.

CPAG and Ngā Tāngata Microfinance jointly welcome the extra consumer protections added to the Credit Contracts and Consumer Finance Act 2003.

Child Poverty Action Group fears new legislation won’t go far enough to protect vulnerable families from loan sharks.

Poor families and their children will continue to be the prey of loan sharks until the Government provides adequate consumer protection.

"It makes no sense to recover housing grants from people who simply are unable to afford to house themselves.”

New measures announced by Minister for Commerce and Consumer Affairs Kris Faafoi, that will strengthen the net of protection for vulnerable consumers.

With loan capital provided by Kiwibank, and partnering with Budgeting Services, Ngā Tangata Microfinance provides no fees, no interest loans to qualifying low income families.

In Aotearoa, where it is legal to charge 500% interest, and then charge administration fees on top of that, having a low income and borrowing money is very high risk.

"Child poverty will not be solved until there is a safe, ethical credit environment for low-income consumers in Aotearoa."

“New Zealanders would not want hundreds of thousands of dollars spent pursuing low-income parents living honestly while Government Ministries try to uphold their right to treat beneficiaries unfairly.”

Families in Aotearoa-New Zealand need a system that provides compassion and understanding when they are faced with their greatest need.

In finding loans as declarable income, it further reduces the ability of low-income families to support their children.