USURY.

Hawera & Normanby Star, Volume XLII, Issue XLII, 8 September 1922, Page 8

USURY.

i . a j A WELLINGTON CASE QUOTED. MINISTER WILL MAKE INQUIRIES. Mr. G. Mitchell (Wellington South) asked the. Minister of Justice in the ■ House if a money-lender who took ad- | vantage of the misfortunes and ignor- • ance of the very poor, and charged them about 80 per cent, interest on small loans, was legally right; and, if , so, would the Minister "lake steps to ;, make such heartless usury illegal"? ': "In one case,'' said Mr. Mitchell, "a 'man states: 'In September of last year my mother borrowed £20 on her furj niture, and later, in October, got another £10. She has paid altogether | . £20 5s 6d, but :s now in debt to the {extent of £33 7s 6d.> This is not by I any means the only of the worst case j known." I The Minister of Justice (Mr. Lee) replied: "Under the money-lenders Act, 1908, no limit is placed upon the rate (of interest that may be charged; but ' that Act provides that a borrower may apply to the. Court for relief when the" charge is excessive or the transaction is harsh and unconscionable or other- j wise such that a Court of Equity would give relief. If the member will supply . the names of the borrowers he refers to and of the person the money was borrowed from I shall be glad to have full inquiries made." i ——^— ———