title: Punching loan sharks on the nose: effective interventions to reduce financial hardship in New Zealand.
abstract: OBJECTIVE
  Growth in the high-cost, unregulated fringe lender market (with these lenders commonly referred to as loan sharks) has occurred both internationally and in New Zealand in recent years. The credit practices of loan sharks create financial hardship for many people including Māori, Pacific and low-income New Zealanders. This paper reports on research that explored strategies for reducing the impact of the fringe lender market on Māori, Pacific and low-income New Zealanders.
  
  
  METHODS
  A narrative literature review and 10 key informant interviews were conducted to provide information on how best to intervene to reduce the impact of the fringe lender market for these people.
  
  
  RESULTS
  The main interventions identified were: two regulatory approaches, one for capping interest rates and another to create codes of responsible lending; access to safe affordable micro-finance options; financial literacy education; and Pacific cultural change around fa'alavelave, which are the 'obligations' of giving.
  
  
  CONCLUSIONS
  Protecting consumers from the unsafe practices of fringe lenders requires a combined approach of discouraging the undesirable practices of fringe lenders through regulation and encouraging the growth of safe, affordable micro-finance options. Financial literacy education is a valuable activity for directing consumer attention to the safest options, but in isolation will have limited effect if options are limited. Health promoters have a valuable role to play in implementing these interventions.
authors.affiliation: Public Health, University of Otago, New Zealand.
authors.forename: Louise
authors.initials: L
authors.lastname: Signal
authors.forename: Tolotea
authors.initials: T
authors.lastname: Lanumata
authors.forename: Sharron
authors.initials: S
authors.lastname: Bowers
mesh_terms: D004467:Economics / Q000331:legislation & jurisprudence*; D005376:Financial Management / Q000331:legislation & jurisprudence / Q000379:methods; D005378:Financial Support / Q000941:ethics; D006801:Humans; D009520:New Zealand; D057766:Policy; D011203:Poverty