Recently, the Minister of Economic Affairs, Geoffrey Wever, appeared before the Parliament of Aruba to provide detailed information regarding the law known as the “Landsverordering regeling consumentenkrediet” (National Ordinance on Consumer Credit). The primary objective of this law is to establish the maximum interest rate a consumer can pay when taking out small or personal loans outside of commercial banks. However, this proposal received strong criticism from Member of Parliament Dangui Oduber.
Consumer Protection in Doubt The law in question regulates the interest citizens pay when purchasing products such as washing machines, dryers, phones, or televisions on credit. Although the official goal of the law is to protect consumers against abusive interest rates, MP Oduber questions the minister’s final decision regarding the maximum percentage.
According to Oduber, during the presentation, it became clear that Minister Wever had several pieces of advice on the table:
- Central Bank: Advised a maximum interest of 22%.
- Bonaire Authorities: A maximum of 22% is also applied on the neighboring island.
- Private Company: Another entity acting as an advisor suggested an interest rate between 18% and 20%.
25% Decision Causes Outrage To the surprise of many, Minister Wever chose to ignore the advice for 18% and 22%, opting instead to set the maximum interest at 25%, based on an analysis by an external consultant. “The Minister chose exactly the 25% rate—the highest interest advised—instead of the 18% suggested by another company,” Oduber declared.
Lack of Balance MP Oduber emphasized that this decision is very regrettable, especially considering the current economic situation where the cost of living is rising and the purchasing power of citizens is declining daily. Oduber believes the Minister is not seeking a balance for the “common man,” but is instead defending the interests of merchants. “We do not feel there is a balance. Once again, the Minister demonstrates that he is not there for the people, but rather to serve the merchant,” the member of parliament concluded.