Representatives of lending company, Cash Converters, have aired their views before MPs today as the Credit Contracts bill is being reviewed in order to crack down on predatory lending.
Cash Converters, which provides payday loans alongside pawnbroking, says it supports the majority of the bill.
But some of it worries them and could lead to unintended consequences for those who are desperate.
"There is a need for small credit and it's actually working well for hundreds of thousands of people," says Cash Converters representative Erin White.
"Real loan sharks are out there, they are active and are happy to lend," he says.
Organisations who help those people know of loan sharks charging up to 1000 per cent interest.
Christians Against Poverty's Aimie Mai says they see the effects of loan sharks regularly.
"We see the horrendous effect that this has. Over a hundred families contact us each month and each of them are drowning in unmanageable debt," she says.
Mr White agrees there is a certain small party of the industry that is doing things that aren't appropriate.
Cash Converters is one of the only lenders expected to appear before MPs as they discuss the bill.
While the majority of submitters are in favour of it, many supporters want it to go further. At the moment, total lending is capped at double the amount borrowed but many want to see the introduction of a cap on interest rates of about 50 per cent.
But Cash Converters claim such a cap would send it out of business.
"Interest rate caps are not the solution, they are unviable for small-amount loans," Mr White says.
Iwi leaders say vulnerable people are being targeted and want to see a ban on mobile loan trucks.
"It's pretty sad, so we've got some predators out there, that's what these retail trucks are," says Lorraine Toki of the Iwi Chairs Forum.
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