Consumers take out payday loans at interest rates of 400%+ to pay basic living costs, but then find they can’t afford essentials like food and rent. So they take another payday loan which sends them into a spiral of debt.
Join the campaign by Consumer Action and other CFA members to end the exploitation of vulnerable consumers.
Debttrap.org.au provides the facts about payday lending. It outlines government proposals to restrict the interest and other charges payable and stop the spiral of debt caused by repeated refinancing. It gives voice to the hundreds of community organisations that provide emergency relief, financial counselling and other services to the people whose lives are damaged by payday lending. And it asks community organisations and individual to take action to help end payday loan debt traps.
If you work for a community organisations please endorse the open letter to the Federal government supporting reform. The letter has already recieved the support of a wide range of welfare and consumer organisations. The campaign calls on all community organisations whose clients or members are affected to sign the letter. Everyone else can show their support by signing up to receive campaign updates.
The government has released draft legislation to rein in payday lending. The proposals do not limit interest rates to 48% as called for by consumer organisations. But they do include significant measures to reduce costs and avoid the regular refinancing of payday loans. Act now to ensure that Parliament enacts the legislation without caving in to objections by the exploitative payday lending industry.
High cost short term loans cause poverty. It’s time for action.