ALLEGED USURY

Dominion, Volume 11, Issue 6, 2 October 1917, Page 8

ALLEGED USURY

SOLDIER'S WIFE PAYS 182 PER CENE GOVERNMENT WILL INQUIRE A case of alleged usurious interest was referred lo by ,Mr. Poole in the House of Representatives last evening. It was a case that had been brought under the notice of tho Claims Board of the Auckland Patriotic Association. A woman whoso huslwnd was out of work at the time borrowed .£2O, of which she received .£l9 10s„ after paying costs. The amount was to be repaid by thirty-five weekly instalments 'of J2l each. Mr. Larna'r said the interest worked out at 182 per cent, per annum. The Prime Minister said the matter would be referred to the Attorney-Gen-eral, who would take the necessary steps to punish anyone breaking tho law and do whatever might be necessary to prevent, the repetition of such offences. Mr. J. Payne (Grey Lynn) said the procedure mentioned by Mr. Massey would not meet the case. He knew of a case in which a person borrowed d£i!o, and had to pay back ten shillings a week for fifteen months. That meant that .£32 10s. had to be paid, for i!2fl. Mr. Payne said he had spoken to a Magistrate about cases of this kind, and the Magistrate stated that where the security was not. sufficient a moneylender could charge almost any rate of interest. Legislation l would be necessary if this evil was to 1m effectively dealt with. Vhe Attorney-General (the Hon. A. L. Heixlman) said the cases referred to might come under the Moneylenders Act. He was informed that an Auckland solictor had been instructed to go into the. case mentioned by- . Mr, Poole. People would not be able to borrow at all unless moneylenders were' allowed to charge some rate - v of interest. He would,, however, make investigation, and, if necessary, legislation would be introduced this session. Mr. C. J. P?it (Eden) said tho Pawnbrokers' Act might cover the cases. Mr. Hwdman: Tes; the Moneylenders Act or the Pawnbrokers Act.