PARLIAMENT

Dominion, Volume 8, Issue 2448, 29 April 1915, Page 3

PARLIAMENT

MORATORIUM TO BE AMENDED

THE EXTORTIONATE MONEYLENDER By a Gazette Extraordinary recently issued, Parliament has been prorogued to May 26, but there is no reason to suppose that _ members will be required to assemble in- Wellington before the usual time—towards the end of June. A visit to Parliament Buildings will give one plenty of evidence, of the approach of the session. Painters and vacuum cleaners are at work in many rooms, and the building; is getting its usual cleaning before the machinery of Parliament is set in motion.

The Attorney-General (the Hon. A. L. Herdman), who is the Minister in charge of the Law Drafting Office, was asked yesterday by a reporter whother be could say anytihing about the legislation likely to be brought before the new Parliament. Mr.: Herdman replied that the Law Drafting Office had been busily occupied preparing Bills, the nature of which he could not disclose, as they had not yet been considered and approved by Cabinet, and for the further reason that-it was not yet possible to say what work would ,be undertaken by Parliament if a'state of war still prevailed. . The Minister was asked if it was intended to propose any amendment of the moratorium, which is officially known as the Mortgages Extension Act. Mr. Herdman said that it wa,s almost certain that there would be some modification of the Mortgages Extension Act brought before the House in the coming session. "This legislation," Mr. Herdman continued, "was passed tq protect jwrsons who found themselves in difficulties. because of the stringency of money caused by the war-. The case of the person who is really in difficulties on account of the abnormal conditions prevailing will, of course,' still have the best consideration of the Government, but experience has' shown that some persons who are possessed of ample means- with which to pay, off their mortgages are taking advantage of the Act, and instead of paying off their mortgages are making use of their money in other ways, and securing -tie advantage of the higher rates of interest which are at present obtainable." . The / last-mentioned persons would not, Mr. Herdman thought, receive much consideration /from Parliament. - .

Speaking :further on tie subject.of rates of interest,' the Minister said that it seemed to him that the provisions of the Money Lenders Act, 1908, were not sufficiently well known to the public. Quite recently he had received a complaint about the action of a firm of money-lenders in New Zealand which bad extorted from persona doing, business with it exorbitant rates of interest. "If you will turn up the Act," he said, "you will find that tho Magistrate's Court has power to grant relief against any extortionate bargains with a money-lender,-and may'exercise its jurisdiction either in proceedings by the moneylender for the' recovery of money, or the enforcement of a security, , or in proceedings instituted.by the borrower himself for relief. Let me quote the principal provisions' of the Act, which were intended by Parliament to help the' person who has been taken advantage of "Section 8, Sub-Section (1)' states: — 'Where proceedings are,taken in Court by a money-lender for the recovery of money lent after the first day of January, 1902 (the date of the coming into •operation of the Money Lenders. Act, 1901), or the enforcement of any agreement or security, made or taken- after that date, and it appears to the Court that the interest charged 1 in respect of the sum actually lent is excessive, or that, the amounts charged for expenses, inquiries,. fines,' bonus,; premiums, renewals, or any other charges are excessive, or' that, m;, either case the transaction is harsh and unconscionable, or Jb otherwise such that a Court of Equity would give relief, the Court may reopen the transaction and take an account' between; the money-lender and the person sued. *

" '■ (2) The Court may, notwithstanding. any statement or settlement of account purporting to close previous, deal, ings and create a new obligation, reopen ■any account' already taken between the money-lender and the person sued, and relieve the. person sued from' payment of any sum in excess of the sum adjudged by the Court to be fairly duo in respect of. such principal, interest, and charges as the Court, having regard to the risk and all ,the circumstances, Considers reasonable; and, .if .any such excess has been paid or allowed-in account by the'debtor, may order the creditor to repay it, and may set aside, either wholly or in part, revise, or alter any security given or agreement made in respect of money lent by the moneylender; and, if the money-lender has parted with the security, may order him to indemnify the borrower or other person sued.

"'(3) Any Court in which proceedings may bo taken for the recovery of money lent by a money-lender shall have and may, at-the instance of the borrower or surety or other person liable, exercise the like powers as may be exercised under this section where.proceedings are taken for the recovery of money lent; and: the Court shall have power, notwithstanding any provision or agreement to the contrary, ; to entertain any application under this. Act by the borrower or surety or other 'person liable,, notwithstanding that the time for repayment of the loan or any - instalment thereof may not have arrived. " 'Provided that a person shall not be entitled ; to apply to the Court under this sub-section unless application ,is made within one year of the transaction being closed.' ' #:: "I mention;this matter," added the Minister, "because I have reason for believing that the publio are not familiar with the nature of. the relief which they oan obtain under the Money Lenders Act," ■