Payday lenders ‘prey on’ ‘desperate and vulnerable’ people | Examiner

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If the federal government refuses to raise Newstart’s rate and offers to test welfare recipients, the least it can do is crack down on payday lenders who “prey on” vulnerable people, says a community loan organization. Tasmanian Interest-Free Loan Network Managing Director John Hooper said payday lenders like Nimble, Cash Converters and Wallet Wizard, as well as consumer lenders like Radio Rentals and Oze Rentals, have a strong business model. on accessing “quick money” to “despair” people. Mr. Hooper’s comments came as a coalition of interest groups, led by the Consumer Action Law Center, descended on Canberra for a “national day of action,” calling on the federal parliament to enact laws to combat the business practices of payday lenders and consumer lenders. borrowers to pay between 112% and 407% interest. ”People approach [these companies] when they are in need and need access to quick cash which usually means people are a bit desperate, “Hooper said.” These guys are private companies. – I understand that they have to make a margin. “But an $ 800 refrigerator shouldn’t cost you $ 2,400 and you still don’t potentially own it in the end.” Mr Hooper said payday loans and consumer leases should be capped in terms of the amount that can be garnished from a borrower’s income. “Yes [the government] will not raise Newstart and they are considering welfare drug testing [recipients], then surely one action they could do is prevent organizations from preying on the people on Newstart and their desperation, “he said. The findings of a review of small credit contracts ( SACC) were made in 2016 and made a number of recommendations regarding the regulation of payday lenders and consumer lenders, including a cap on the total amount of payments to be made under a credit- household items lease. The government accepted the findings and legislation was drafted to implement the reform – but it has since appeared to have been Consumer Action calls on the Coalition to bring the legislation to Parliament before the end of the Deputy Treasurer Michael Sukkar said the government is currently considering public submissions for consultation on a “suite” of SACC and consumer lease reforms. “We agree. ns the need for reform in these areas and that reforms must find the right balance to strengthen consumer protection, while ensuring that these products and services can continue to play an important role in the economy ”, a- he declared. Australian Greens consumer and finance spokesman Peter Whish-Wilson said “the least this government should do is implement the findings of its own review.” “This government must take its finger off and move forward with this bill,” said Senator Whish-Wilson.

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