Payday loan providers nevertheless cashing in with sky-high charges

Payday loan providers nevertheless cashing in with sky-high charges

Would be the federal government’s new cash advance restrictions sufficient to help keep short-term borrowers away from trouble?

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Short-term loan industry keeps growing

Final updated: 01 2014 july

Pay day loans have actually made matters that are financial for an abundance of individuals – but which hasn’t stopped the lenders from searching for brand new borrowers.

Among the payday loan businesses that are biggest in Australia, UK-based money Converters, goes gangbusters, showing a revenue increase of 38% when it comes to 3rd quarter regarding the 2014 monetary 12 months (closing in March) weighed against exactly the same quarter in 2013. The organization had 55 shops in Australia and had generated $155m in income at the time of December 2013.

The very good news is the government has brought actions to guard from this very predatory kind of financing. Since March 2013, payday advances as much as $2000 that really must be paid back in 15 times or less have already been prohibited. Continue reading “Payday loan providers nevertheless cashing in with sky-high charges”