Ms Beaumont, of Auckland, said she talked to Dunedin Budget Advisory Service, Dunedin Community Law Centre and Age Concern Otago yesterday about debt to Dunedin loan sharks.
''Overwhelmingly, the people going to budget services are hooked in to some high-interest lending arrangements which is difficult for them to unravel.''
High-interest loans were being given to those who could not afford the debt repayments.
''It has got worse as things have got tighter economically and the Government has failed to act on it.''
The Credit Contracts and Consumer Finance Amendment Bill had been introduced to Parliament but not been prioritised.
Meanwhile, budget advisers were ''picking up the pieces'' as people's debt spiralled out of control.
''So we are pushing hard on Government to move on that.''
Sales trucks continued to target low-income neighbourhoods in New Zealand, she said.
''Their business model is goods provided at inflated prices and credit provided at high interest rates ... I am building up some examples of pretty horrendous case studies related to truck shops.''
The legislation would provide provisions for more responsible lending and clearer lending disclosures, she said.
''There are a lot of things being done now that are perfectly legal but they are morally wrong.''
Minister of Commerce Craig Foss and past National commerce ministers had not prioritised the Bill to make loan sharks more accountable, she said.
Dunedin South MP Clare Curran said some Dunedin beneficiaries paid up to $110 a week to service debt.
''We've got to get that legislation through the House and in to the select committee and actually passed.''
Mr Foss could not be contacted for comment last night. shawn.mcavinue@odt.co.nz
