STRICT CONTROL.

Star (Christchurch), Volume LXIV, Issue 927, 23 November 1933, Page 5

STRICT CONTROL.

New Legislation Covering Moneylenders. LIMITATION OF' INTEREST. (“ Star ” Parliamentary Reporter.) WELLINGTON, November 22. Stringent control over moneylenders is proposed in the Moneylenders Amendment Bill, which was introduced in the House to-night. The principal features of the measure are th'fe institution of annual registration after magisterial examination, the right of a borrower to ascertain the state of his account at any time, limitation of interest to 48 per cent, and prohibition of contracts embodying compound interest. The measure proposes that from April 1 next an annual license fee of £lo must be paid for each registered address of a moneylaqder. Persons convicted under the principal Act or amending legislation may have their registration cancelled or suspended, for a. period, or may be disqualified from being registered for such time as the Court may fix, and particulars of a conviction are to be endorsed on the license.

A borrower is entitled, on payment of one shilling, to a statement giving full particulars of his account, and on payment *of reasonable expenses to copies of every document affected. Where, after the Bill is passed, it is found that interest charged exceeds 48 per cent per annum, the Court shall, unless otherwise proved, assume that the interest charged is excessive, but power still is retained by the Court to declare that interest at a less rate than 48 per cent is excessive.