Could peer-to-peer lending challenge banks?
Peer-to-peer lending has the potential to replace banking, but the concept faces a number of challenges.
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Debt
Soaring FOS disputes highlights need to tackle financial difficulty
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The number of financial difficulty disputes handled by FOS increased by 130% (from 2,648 to 6,108). This continues a similar trend from the previous year. FCA is calling for action.
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30,283 financial service disputes at FOS in 2010/11, up 27%
FOS latest Annual Review has been released, with summaries in English and other community languages. Also published online are Comparative Tables showing disputes about individual financial service providers.
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Committee’s report shows responsible lending laws aren’t enough
The Consumer Action Law Centre has welcomed the finding from a parliamentary committee of inquiry that Australia’s responsible lending laws don’t sufficiently protect consumers from harmful payday loans. However, the Centre said it was disappointed the inquiry hasn’t supported a cap on the cost of credit, and it has called on the Government to stay…
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Stronger hand needed to stop debt traps – committee to report this week
With the Commonwealth Parliament’s joint committee on corporations and financial services due to report soon, Annette Sampson reports in the SMH on a Queensland court decision that exposes the problems in the payday lending industry.
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Pay day loans harm our clients say financial counsellors
A national survey of over 300 financial counsellors has slammed the payday lending industry.
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Cash Converters lending practices challenged in court
A disability support pensioner, Ronald Hayes, has taken legal action against Australian’s biggest payday lender in the Victorian Magistrates Court.
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RMIT & UQ research: Payday loans a debt trap for welfare recipients
New research shows welfare recipients are using payday lenders to meet regular living expenses and are then trapped in a debt spiral, continuously indebted to one or more loan companies for considerable periods according to Caught Short an Interim Report by RMIT University and the University of Queensland and funded by National Australia Bank and…
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Responsible lending doesn’t have to be restrictive
AAP The Federal Government has taken significant steps in recent years to protect consumers from predatory lending practices, such as very high-interest “payday loans”. An unfortunate, though surely unintentional, consequence of lending regulation is that people on low incomes or with poor credit records may find it difficult to secure loans. Under our National Consumer…
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Consumer groups launch ‘debt trap’ web site
A coalition of consumer and financial counselling organisations has launched a new website to ensure the hard truths are heard in the debate about the future of short term high cost loans – www.debttrap.org.au. The new website delivers the confronting facts about payday loans, busts myths currently being spread by payday lenders, and outlines safer…
Read More Consumer groups launch ‘debt trap’ web site