Payday lending reforms set to become law
The Financial Sector Reform Bill 2022 recently passed by the Australian Parliament provides enhancements to the national credit laws that apply to pay day loans and consumer leases.
The changes ensure that pay day lenders:
- cannot take more than 10 per cent of a person’s net income for loan repayments
- set equal repayment amounts and intervals for payment
- cannot charge monthly fees for the residual of the loan term if the borrower pays off the balance early
- must document their loan assessment decisions in writing
- cannot send marketing and unsolicited communications encouraging consumers to enter into loans.
If you are struggling with a debt linked to payday lending, Good Shepherd provides no interest loans for Australians on low incomes to help finance things like emergency essentials, cars or whitegoods. Find out more.