Call to crack down on irresponsible lending

In Holland we have a saying : Als het kalf verdronken is dempt men de put. Roughly translated this is: After the calf has drowned one covers the well.

In other words; After it all turns to shit you take the measures that would have prevented the mess from happening in the first place.

It seems to me that this is such a situation.

The practice of lending more than people can afford to pay should be targeted as part of a review of consumer finance law, officials said as they released data showing high levels of credit defaults.

The briefing for the incoming minister paper, prepared for Consumer Affairs Minister Heather Roy by the economic development and consumer affairs ministries, was released today.

It said there was low confidence in the financial sector due to over-borrowing, over-lending, poor financial advice, corporate fraud and bad decision making in conjunction with people having less money to spend and the international credit crunch.

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