The Commerce Commission is taking Moola, a short-term lender, to the High Court, on allegation of breach of responsible lending practices between 2015 and 2017. Like many others, Moola offers from $100 to $5000 as loans very quickly, but with rates that can go up to 625%. And while none of this is illegale, the lending companies are supposed to research their clients' ability to repay such loans before granting them. 

The Commerce Commission was alerted by a referral made by Fincap, and organisation that provides budget advice. Lisa spoke with its CEO, Tim Barnett. 

She also had a chat with Robert Choy, of Ngā Tāngata Microfinance, a charitable trust that offers loans free of interest and fees, to help out those who got trapped in the vicious circle of debt.