MONEY LENDERS.

Wanganui Chronicle, Issue 15000, 22 September 1900, Page 2

MONEY LENDERS.

A BILL TO DISCOURAGE HARSH BARGAINS. (From our Special Parliamentary Corres pondenfc.) (By Telegraph.) WELLINGTON, September 21. A Bill hase been introduced by the Premier to amend the law with respect to peisons carrying on business as money.endeis. The preamble states that certain peisons trading as money-lendeis inrlict by narsh and unconscionsable bargains, great injury upon those who borrow money irom tliem, and it is expedient that such moneylenders and their methods of carrying on business should be subject to the control of the Bill. "Money-lender" includes every person whose business Ls that of moneylending, or who advertises or announces himself, or holds himself out in any way us carrying out that business, but does not ine ude (1) any duly licensed pawn-broker in respect of business carried on by him in accordance with the provision of "The Pawnbrokers Act, 1868," or (2) any society registered under ''The Building. Societies Act, lbBO," (3) Any society registered under "The Friendly Societies Act, 1882," l->) any body corporate, incorporate, or empowered by special Act of Parliament to lend money, or (5) any person bona fide .carrying on the business of banking, oi insurance, or any business of banking or insurance, or any business not having for its primary- object the lending of money. Where proceedings are taken in a court by a money-lender for the recoveiy of money lent, and the Court has reason to believe that the interest charged exceeds the rate mentioned in the schedule, or that the amount charged for expense.s, fines, premiums, etc., are excessive, and that the transaction is harsh and unconscionable, the Court may re-open the transaction and relieve the person sued from payment of any sum in excess of the sum adjudged by the Court to be fairly clue. If such excess has been paid, the Court may order the creditor to repay it. The Court may a'so set aside either wholly, or in part, or revise or alter any security given, or agreement made in respect of money lent by the money-lender, and if the money-lender has parted <Hth the security, may order him to indemnify the borrower or other person sued. The Court in which proceedings might be taken for the recovery of money lent by a money- - lender shall have, and may, at tlie instance of the borrower or surety, or other person liable, exercise the like powers as may be exercised where proceedings are taken for the recovery of money lent. A money-lender (a) sha 1 register himself as a money-lender in accordance with the regulations under the Act, under bis own or usual trade name, and in no other name, and with the address at which he carries on his business; (b) shall not enter into any agreement with respect to the advance and repayment of money, otherwise than in his- registered name ; (c) shall on reasonable request, and on tender of a-reason-able sum for expenses, furnish the borrower with a copy of any document relating to the loan or any security. If a money-lender fails to comply with any of the requirements of the section, he shall be liable ito a penalty not 'exceeding one hundred pounds, arid in the case of a second, of subsequent conviction, to imprisonment, with or without hard labour, for a term not exceeding three months, or to ;i penalty not exceeding one hundred pounds, or to both, provided that if the offender is a body corporate, that body corporate shall be liabfe, on a second or subsequent conviction, to a penalty not exceeding five hundred pounds. If any money-lender by any false statement or representation attempts to induce any person to borrow money, he shall be liable to imprisonment, with or without hard labour, for a term not exceeding two years, or to a penalty not exceeding £500, or to both. In the schedule above referred to, the rate of interest is fixed as follows: — In respect of a loan (whether made by one or more advances), not exceeding forty shillings 15 per cent per annum; if secured, and 25 per cent per annum if unsecured ; exceeding forty shillings, but not exceeding £10, 12 per cent per annum if secured, and 20 per cent per annum if unsecured; exceeding £10, 10 per cent, per annum if secured, and 15 per "cent; "perannum if unsecured.