Headline: Clear rules needed for goods repossession
The Government needs to take action to rein in aggressive repossession agents, says Labour’s Consumer Rights and Standards spokesperson Carol Beaumont.
“Today’s story of a West Auckland man, who felt his family’s privacy had been breached due to the unauthorised and unnecessary invasion of his home by repossession agents, is a timely reminder that a clarification of the rules governing repo agents is sitting ready for the Government to action.
The Law Commission made a series of recommendations last year following concerns around repossession practices. It is time Consumer Affairs Minister Craig Foss took action to implement these recommendations.
“A significant number of those changes have been included in the Credit Contracts and Financial Services Law Reform Bill which is languishing on Parliament’s order paper.
“The actions of repo agents are of increasing concern, particularly when undertaken on behalf of third tier lenders. Some operators are taking liberties with consumers’ rights.
“When a situation deteriorates to the point where goods need to be repossessed, agents will often be dealing with consumers in very vulnerable situations. The rights for both parties need to be explicit and good practice upheld.
“The Credit Contracts and Financial Services Law Reform Bill, which deals with consumer credit issues including repossession, was a part of National’s election promise to crack down on dodgy lenders.
“Instead of taking action it has shelved the issue and New Zealanders are worse off,” Carol Beaumont said.
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