According to the Cabinet document, the blanked-out proposal would permit "innovation in products that are equivalent in terms of risk and complexity to the existing category 2 debt products".
"It's ironic that this right-wing government cover-up has been instigated in a document about improving disclosure," the source, who categorically denied being Kim Dotcom, said. "Ve understand this proposal will result in many low-income New Zealanders being sold into debt slavery via poorly-advised bank products."
But another source has labeled these claims as "left-wing loony talk".
The insider, who has no proven links to whale oil producer and right-wing blogger, Cameron Slater, said the Cabinet policy document shows the government had, in fact, foiled a socialist plot to undermine the financial industry.
"If you read actual wording of the Cabinet document and imagine what other words might fit in the blanks, it's clear some leftist bureaucrat had slipped in proposals to allow credit unions, and other dubious member-owned organisations, to sell a broader range of financial products with the same disclosure exemptions as proper banks," the source said.
"Quite rightly, the Cabinet struck out these absurd clauses."
According to a former ex Twitter-follower of Justice Minister Judith Collins, the decision to block out the two sentences from the FMC Cabinet paper was not politically motivated.
"I have it on good authority that the redactions were made after a Mont Blanc fountain pen leaked strategically on the policy document," the source said. "While Mont Blanc is a reputable brand, unfortunately, on this occasion there appears to have been a product failure."
It is understood all Cabinet ministers and upper-echelon bureaucrats are issued with Mont Blanc fountain pens under global best-practice stationery standards.
In a statement, Prime Minister John Key said it was the end of the day.