Member for Blair, Shayne Neumann MP, is urging the Government to follow the recommendations made by the review of Small Amount Credit Contract (SACC) laws which was finalised in March 2016.
The report showed some families are paying over $3,000 for household goods like a clothes dryer that would normally cost just $345.
That’s equivalent to an interest rate of 884 per cent.
Mr Neumann is joining his Labor colleagues to call on the Government to stop stalling and get on with the job of protecting families in Ipswich and the Somerset Region who are being ripped off by pay day lenders.
“It has been almost 2 years since the Government received the report and recommendations from their own SACC laws committee and they are yet to show any significant support to vulnerable Australians who are being taken advantage of,”
“People who are living week to week are being ripped off by extravagant interest rates. The Government needs to stop pay day lenders exploiting the system and taking advantage of Ipswich and Somerset Region families.”
A recent report from the Consumer Action Law Centre showed that the number of borrowers taking out more than one payday loan in the preceding 12 months has grown from 17.2 per cent in 2005 to 38.0 per cent in 2015.
This means that average number of loans per loan borrower is 3.64.