Home Direct boss Michael Wright supports regulation on industry

Home Direct is the largest mobile trader in New Zealand.

The boss of New Zealand's largest mobile trader says he shares some of the concerns raised by a Whanganui legal advocate about the industry and his company has supported regulation.

Bronwyn Rogers from Community Legal Advice Whanganui told Whanganui district councillors last week that vulnerable people were being targeted by mobile traders.

She was concerned people were being pressured into taking on debt and selling products at highly inflated prices.

Rogers said she was aware of at least eight truck shops or door-to-door sales outfits operating in Whanganui and she and budget advisers were dealing with the fallout such as vulnerable people ending up in a debt cycle.

Home Direct chief executive Michael Wright said his company was above board but he had heard of such issues in the wider industry.

"We are aware of high priced items being offered for sale at high interest rates from other mobile shopping companies as well as retailers operating from traditional stores which operate in lower income communities," he said.

Home Direct was the only company out of 32 found to be operating in a compliant manner when the Commerce Commission did a investigation into mobile shopping companies in 2015.

Wright was also aware of concern about pressure being placed on customers by mobile traders and said focus needed to be put on companies not following the rules.

"We consistently hear from our customer base of other mobile shopping companies who have visited them and tried to pressure them into purchasing items from their companies."

He said he was not speaking on behalf of other mobile trading companies.

"In fact we have consistently been the loudest voice to the Commerce Commission asking them to focus their efforts on those companies who do not operate within the law and as a result consistently cause harm to the communities they operate in."

Bronwyn Rogers has made a plea to Whanganui district councillors to help crack down on mobile traders.

Home Direct took its "obligation to lend seriously" and declined more than 50 per cent of finance applications, Wright said.

"If mobile shop operators are consistently giving credit to people who cannot afford it, then they will be in breach of the Consumer Credit and Contracts Act (CCCFA).

"They will also be placing themselves under pressure as people who can't afford the credit, don't pay off the product they have purchased and received and ultimately become bad debts which cost the company money."

He said Home Direct submitted in favour of the changes to the CCCFA which introduced the Responsible Lending Code, that it also been assisting MBIE with its current review of the legislation and works with other organisation including budget services.