Vulnerable consumers will be better protected under proposed legislation set to be introduced into Federal Parliament today.
The legislation, to be brought forward by Senators Griff and McAllister, will amend the National Consumer Credit Protection Act (2009) to toughen laws around payday loans and consumer leases to protect Australian families.
Almost one million households are now utilising payday loan schemes, leaving many struggling financially due to high fees and interest rates of up to 400 per cent.
Recent reports also indicate that around 30,000 payday loans are granted on a weekly basis.
In fact, between April 2016 and July 2019 alone, more than 4.7 million payday loans were approved comprising approximately $3.09 billion in new debt.
The number of women using payday loans has risen from 177,000 in 2016 to 287,000 in 2019.
Single mothers now account for nearly half of all loan recipients.
Earlier this year, Senator McAllister initiated a Senate Inquiry into credit products targeted at Australians in financial stress.
Despite multiple promises by the Morrison Government, they continue to ignore the growing crisis leaving families to pay the price.
Labor is collaborating with Centre Alliance because if the Liberals won’t act, the parliament will.
Quotes attributable to Stephen Jones MP:
“Despite multiple promises by Government Ministers, the Assistant Treasurer Michael Sukkar continues to ignore the growing crisis, leaving families to pay the price.”
“Labor call on the Government to support this legislation and provide protection to families and vulnerable Australians from loan sharks.”
Quotes attributable to Senator Jenny McAllister:
“Countless Australians have detailed how blatant exploitation by these firms has left them devastated and debt-ridden.”
“Many families are doing it tough and are struggling to bridge the gap between their income and their basic needs.”
“It should not be beyond us to ensure that when these families reach out for credit, that it’s affordable and offered on just terms.”
Quotes attributable to Milton Dick MP:
“For far too long the loan sharks have been ripping off Australian families, sending many into a debt cycle and bankruptcy.”
“Single mothers, families and seniors are being exploited by loan sharks who take advantage of people in vulnerable situations.”
“The Government has known about this growing crisis for more than 4 years. It’s time they stopped the excuses, stopped caving into the demands of the loan sharks and put in place this important piece of legislation to protect Australian families.”