The National Party propose to help “poor” borrowers by, inter alia, extending the “cooling off” period from three to five days. The logic here is astounding.
Is this how it works?
Erstwhile borrower enters credit contract to borrow some money then….
- Day One: “yip, good as gold, glad I have this loan.”
- Day Two: “Going fine, this loan is just what I need.”
- Day Three: “Excellent, three days in and looking good.” (that’s the current law)
- Day Four: “Hold on, I’m starting to get smarter. Must be than omega 3 I’m scoffing. Takes a while to kick in”
- Day Five: “Whoa – this loan stinks. I’m outta here. Thank God for the government.”
This is utter nonsense which helps prevent people learn any of the things that might improve their financial health.