MHR bass Bridget Archer wants to focus on payday lenders, not cashless welfare card | Examiner

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Liberal MHR Bridget Archer de Bass said it was “extremely disappointing and frustrating” that the government had yet to crack down on payday lenders, which she said hurt the most vulnerable. In her speech outlining her concerns about plans to make the cashless welfare card trial sites permanent and expand them to the Northern Territory and Cape York, Ms Archer referred to areas she believed to be higher priority. Among these was the crackdown on payday lenders, who offer cash loans at high interest rates. LEARN MORE ABOUT PAYROLL LENDERS AND OWNERSHIP: Archer said these companies often exacerbate the disadvantages. “I find it extremely disappointing and frustrating that we are looking to support revenue management systems without addressing the reprehensible practices of payday lenders,” she said. “Seeking to manage people’s income on the one hand while on the other hand you allow very predatory payday lenders direct access to the most vulnerable in our community. “It is a total and damaging contradiction to that. We need to invest in long-term solutions that create lasting and meaningful change. In 2017, the government drew up a survey bill that would have provided greater protection for vulnerable consumers. He did not progress after the industry lobbying. Since then, A Senate investigation has uncovered a slew of examples where vulnerable Australians had entered into multiple pay-as-you-go leases that cost them significantly more in the long run. also resulted in no change. MHR freelance Andrew Wilkie this week introduced his own bill to Parliament – a replica of the 2017 bill. It would cap option-to-buy rental programs, require payday loans to have amounts and costs. equal repayment intervals, remove monthly fees, and prevent branding of rent-to-buy programs in people’s homes. Mr Wilkie said it was out of time to introduce more regulation in the industry. y so many people, we still haven’t provided the consumer protection they desperately need and will need even more as we enter the post-pandemic world and government income support payments are made. reduced, ”he said. “Experts, including ASIC to Senate estimates most recently, have argued that there will likely be increased consumer reliance on payday loans and lease-to-buy programs.” In his speech to Parliament this week, Wilkie gave two examples of the impact of payday loans. In the first, a single mother of three used payday loans from eight different lenders to gamble online, including providing business bank statements that showed how she was using the money. “In fact, most of the money on these statements was clearly going to other gambling payday lenders and also to a debt collection agency,” Wilkie said. Her bank refused to cancel direct debits, and by the time she signed up with an advisor, she was homeless. The second example involved a 17-year-old homeless man who suffered from psychosis. She was granted a loan of $ 250 to cover her daily expenses, but was hospitalized due to her mental health issue. Over the next year, the debt rose to $ 770 in fees and interest. The debt was eventually canceled after being deemed “irresponsible loan”.

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