27 March 2017
120 day delay inflicting greater payday pain
Consumer groups call for the Federal Government to take immediate action to protect payday loan and lease borrowers.
Consumer groups call for the Federal Government to take immediate action to protect payday loan and lease borrowers.
This popularisation of sports gambling culture has been mirrored in the financial sector, where the ease in online lending, anywhere, anytime, combined with an advertising blitz, has seen a boom in payday loans.
Good Shepherd Microfinance commends the Small Amount Credit Contract Review panel for the comprehensive and fair-minded approach that has been taken throughout the process.
'Rent to buy' companies would be required to disclose the total cost of their contracts and abide by a new price cap if the Australian Government adopts the recommendations of its review into Small Amount Credit Contracts.
New research shows a surge in the number of women turning to high cost payday loans in Australia. This suggests a growing number of women are being excluded from the financial mainstream.
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 called on lenders to establish a new “responsible referral framework” which would see payday lenders refer people on low incomes to the No Interest Loan Scheme.