A campaign against loan sharks operating in low-income communities was launched at a meeting last night.
The meeting, organised by the group Global Peace and Justice Auckland, was aimed at getting community groups to develop a campaign against loan sharking and casinos because of the social distress they cause.
Group
spokesman John Minto said members of the community and representatives from organisations such as the Citizens Advice Bureau and Budget Advice attended.
"One person in particular, who works with young people on the street, talked about how many of them are selling their bodies into prostitution because of addictions to gambling, or to pay off borrowed money," Mr Minto said after the meeting.
He said many loan sharks that charged "horrendous" interest rates were not registered companies.
"The interest rates are appalling.
"People borrowing $200 are paying back $400 or $500 a couple of months later.
"But even registered companies are lending $5000 to people to buy a car, but getting paid back $15,000 over the next couple of years."
Last night's meeting was the first in a series of steps, he said. "We're working our way through with the community and we'll have public meetings across South Auckland later in the year."
Helplines
Federation of Family Budgeting Services: Tel (04) 471-1420
Gambling Helpline: 0800-654-655
Citizens Advice Bureau: 0800 FOR CAB (0800-367-222)
