payday loans

All credit products should be capped at 48% interest.

Payday lenders enjoy an exclusion from the cap on interest and fees in the National Credit Act that is applied to finance greater than $5,000. While payday loans are regulated in terms of the interest and fees charged, these loans can attract comparison interest rates between 112% and 407%. These high costs trap Australians into an ongoing debt cycle, perpetuating hardship.