Stacey Jones fronting for 'loan shark' - MP

A Labour MP says Stacey Jones should stop promoting a major finance company after labelling it a

A Labour MP has called on league great Stacey Jones to stop promoting a major finance company after labelling it a "loan shark".

Mr Jones has been appearing on ads for Instant Finance since signing on to endorse the company in April 2010.

He is in Hastings today to open its first Hawke's Bay branch.

Hawkes Bay MP Stuart Nash signed a petition calling for Mr Jones to quit backing the company ahead of the opening.

Mr Jones was an icon in the low income areas that were targeted by high interest lenders such as Instant Finance, he said.

He claimed its interest rates - which had a top rate of 29.95 per cent in 2010 - made the company loan shark.

"He's a legend rugby league player - there's no doubt about that. But he's fronting a company that has predatory interest rates.

"If he's going to back anyone, back Kiwibank."

A spokesman said Mr Jones did not want to respond to the MPs statements.

He defended Instant Finance as a mid-level lender and referred further queries to the company's chief executive Richard de Lautour.

Mr de Lautour said Mr Nash was taking shots at an "easy target" for political gain and accused him of not understanding how the company operates.

The real problem was not with Instant Finance, but with unlicensed loan dealers charging extremely high interest rates, he said.

"To say there is a conflict there - you may as well say Dan Carter and Stephen Fleming shouldn't be selling heat pumps.

"These people are doing the people they think they're helping harm."

Mr de Lautour said Instant Finance completed budgets with all its prospective clients and rarely had problems with defaulting borrowers.

Many of its clients were able to improve their credit record during their time borrowing from the company - with some going on to get bank loans, he said.

But Mr Nash said the company was in the business of giving high interest loans to the people that could least afford it.

"Stacey's brand is so postive and so iconic. That's why they use the guy.

"I'd like to think he is fully informed about what Instant Finance do, which is take advantage of people that can be taken advantage of.

"My plea to Stacey would be take a good hard look at what company represents. If I was a charitable organisation in South Auckland, I don't think I would use a player that has represented Instant Finance."

Labour MP Carol Beaumont, who authored the Credit Reform (Responsible Lending) Bill, said the issue was part of a wider problem with loan sharking in New Zealand.

She called for regulation targeting celebrity endorsements of financial institutions to be introduced alongside a cap on interest rates and a requirement to lend responsibly.

"Many people have raised their concerns about the role it's playing. You don't use these people if you don't think they're going to influence people."

Commerce Minister Simon Power has announced a financial summit in August, saying it is time to make changes in consumer credit.