CHOICE endorsed Consumer Action Law Centre's joint submission to the Senate Economics Committee in regard to the Financial Sector Reform Bill 2022, Schedule 4: consumer credit reforms.
Consumer groups urge the Committee to recommend that the Senate passes this Bill in full, as quickly as possible.
Consumer groups support the Federal Government's proposal to regulate payday loans and consumer leases. Casework organisations routinely advise and assist people who have numerous payday loans or consumer leases from multiple providers to that they are obliged to make repayments, all at the same time. From this, we know that the product design of payday loans—including high repayments over a short-term—entices people back for further loans, driving a debt spiral.
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