The Salvation Army has launched an ethical shopping truck, where people in South Auckland can buy food, clothes and other items and receive small loans without the huge interest rates charged by some predatory lenders.

The truck, known as The Good Shop, will not actually carry physical goods. But it will feature two computers, which consumers can use to buy goods from the charity’s retail partners.

People will be able to receive interest-free loans, thanks to support from BNZ and Good Shepherd NZ, to buy cost and energy-efficient items at competitive prices from The Warehouse, Noel Leeming and Warehouse Stationery and grocery items from Countdown.

Credit will not be extended to groceries, given it is an ongoing consumable expense, however, the Salvation Army said it will support people to access food at standard supermarket prices.

According to the Salvation Army, the initiative was formed as an alternative to problem debt and fringe lending in low socioeconomic areas across New Zealand.

“We knew we needed to start reform now,” said Jodi Hoare, The Good Shop project manager. “Every day we see people trapped in a cycle of debt by these loans, with no other options open to them and often with limited economic understanding.”

Hoare said The Good Shop will provide these people a safe alternative solution.

“Not only will the initiative bring fair and ethical credit directly to the streets, it will also increase public exposure to financial education and undo some of the damage that has been done by predatory loan services in the community.”

Essential household items such as food, furniture, electronics, appliances, whiteware and baby items will be available via online shopping technology on board the truck. Salvation Army workers will be on hand to assist clients and provide referrals to other services and welfare that may benefit them, including budgeting advice.