I’m privileged to be able to speak with Good Money clients about their financial challenges, successes and aspirations. All too often they speak with regret about the time they tried ‘rent to buy’.
"After having to leave your job when you had no choice about it, you feel like everything has gone. When I was successful in getting that loan, it picked me up. I felt I was in control again."
Good Shepherd Microfinance is calling for a limit on the cost and length of consumer leases, also called ‘rent to buy’ deals, the introduction of mandatory positive credit reporting for payday lenders and consumer lease companies and the expansion of ‘protected earnings provisions’ to all people on low incomes.
New report, which shows the cost of “rent to buy” deals can be as high as 884 per cent, highlights the industry’s exorbitant pricing and willingness to target people on low incomes.
Good Shepherd Microfinance has welcomed the Australian Government’s review into high cost payday loans and consumer leases.
Good Shepherd Microfinance has welcomed changes to Centrepay that will expand services to include low interest loans and savings and provide greater protection for people on Centrelink benefits.
Figures showing almost half of Radio Rentals’ $197 million revenue comes directly from Centrelink payments have led Good Shepherd Microfinance to call for a new “responsible referral framework” to be introduced into the consumer lease industry.