The reckless behaviour of pay day lenders has gone on long enough.
New data released by the Consumer Law Action Centre shows that the number of households with a pay day loan continues to sky rocket and now sits at almost 800,000.
This number has more than doubled in the past decade including 150,000 new households signing up for pay day loans in the last 18 months alone.
Pay day loans are almost exclusively used by people on low or very low incomes to try to keep their heads above water, however often fall into a debt cycle.
This is due to the outrageous fees and interest rates of almost 900%.
It has now been more than 1,000 days since the government announced a review into payday loans and rent-to-buy schemes in 2015 and despite repeated promises and supporting the 24 recommendations from the review, we are yet to see any action to clamp down on the loan sharks.
Examples of people being exploited are endless. This includes heartbreaking stories like the Queensland mum who was approached by a pay day lender and signed up to rent a fridge on the spot.
After her electronic signature was captured, she was only told how much she would pay a fortnight - $81.44. Just two weeks later the full story was revealed with the fridge costing an astronomical $6,352.20 over three years.
You can learn more about the impact the pay day loans industry is having on our community by watching the three part video series on my Facebook page. You can also show your support to clamp down on the loan sharks by signing the petition at www.stoptheloansharks.com
If you’d like to share your experience with pay day loans, please contact my office on 3879 6440 or send me an email at [email protected]