TIM HAMMOND MP
SHADOW MINISTER FOR CONSUMER AFFAIRS
SHADOW MINISTER ASSISTING FOR RESOURCES FEDERAL MEMBER FOR PERTH
MILTON DICK MP
FEDERAL MEMBER FOR OXLEY
Federal Labor is increasing concerned that the rate of vulnerable Australian families being taken advantage of by pay day lenders has sky rocketed over the past decade, with 650,000 financially stressed households now holding a pay day loan.
Shadow Minister for Consumer Affairs Tim Hammond MP, and Federal Member for Oxley Milton Dick MP said it was time the Government stopped sitting on its hands and did something about this growing financial epidemic.
“It’s been almost two years since the Government received the report and recommendations from their own small amount credit contract (SACC) laws committee and they are yet to show any significant support to vulnerable Australians who are being taken advantage of” said Mr Dick.
“I’ve heard of examples where families are paying over $3,000 for household goods like a clothes dryer that would normally cost just $345. That’s equivalent to an interest rate of 884 per cent which is just unacceptable.
“I’m calling on the Minister for Revenue and Financial Services Kelly O’Dwyer to come clean on when we can expect to see reforms implemented to protect vulnerable Australians.”
A recent report from the Consumer Action Law Centre showed that the number of borrowers taking out more than one payday loan in the preceding 12 months has grown from 17.2 per cent in 2005 to 38.0 per cent in 2015.
This means that average number of loans per loan borrower is 3.64.
“For almost two years the Minister has been missing in action and like most things the Minister does she either doesn’t understand the importance of the issue or simply can’t be bothered to do the basics” said Mr Dick.
“The Minister has already said that the Government supports the vast majority of the recommendations, in part or in full, so it’s time we saw some action to protect vulnerable Australian families.”