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Greens back pay day loan bill, urge greater consumer protection

 

The Australian Greens have today welcomed the introduction of the government's Consumer Credit And Corporations Legislation Amendment (Enhancements) Bill 2011 and urged the government to stand firm against complaints from the loans industry.

 

"The bill today is a positive step toward tackling what's becoming an increasing problem among Australian households, particularly women on low-incomes," Greens' consumer affairs spokesperson, Sen. Sarah Hanson-Young, said today.

 

"Short term loans are a valuable service but it's important that there are reasonable caps on interest, to ensure that when you fall behind, you still have a chance of getting ahead.

 

"We know that once you take one or two loans such as this, the interest rates of up to 600 percent make it really difficult to pay off.

 

"We hope the government resists the calls from the major providers of short term loans to weaken the bill so that the cap provides the maximum protection for consumers.

 

"It's time that we saw sturdy protections for consumers to lessen the chance of them being taken for a ride by opportunistic lenders."

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