Stop the Debt Trap

Payday loans trap people in a cycle of debt, a cycle that many people struggle to free themselves from.

It’s been nearly three years since the Coalition Government accepted the recommendations of its own review into the payday lending industry. In that time, more and more Australians have been sucked into debt.

A new report by the Stop the Debt Trap alliance shows just how much the payday lending industry has profited from trapping people in debt during that time.

Between April 2016 and July 2019, more than 4.7 million payday loans have been written worth approximately $3 ...

Payday loans trap people in a cycle of debt, a cycle that many people struggle to free themselves from.

It’s been nearly three years since the Coalition Government accepted the recommendations of its own review into the payday lending industry. In that time, more and more Australians have been sucked into debt.

A new report by the Stop the Debt Trap alliance shows just how much the payday lending industry has profited from trapping people in debt during that time.

Between April 2016 and July 2019, more than 4.7 million payday loans have been written worth approximately $3.09 billion in total;
Victoria had the highest number of new payday loans in that time; and
The number of women using payday loans has increased by 23% with nearly half being single mothers.

Your Federal MP needs to know what the Government’s inaction is costing people. Will you send a copy of the report to your Federal MP today?

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Email your MP

Send your Federal MP a copy of the report and call on them to be a champion for stronger regulation of this harmful industry.

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Subject:

Payday loans trap people in a cycle of debt, a cycle that many people struggle to free themselves from.

It’s been nearly three years since the Federal Government accepted the recommendations of its own review into the payday lending industry. In that time, more and more Australians have been sucked into debt.

This new report released today by the Stop the Debt Trap alliance shows just how much the payday lending industry has profited from trapping people in debt during that time.

•	Between April 2016 and July 2019, more than 4.7 million payday loans have been written worth approximately $3.09 billion in total;
•	Victoria had the highest number of new payday loans in that time; and
•	The proportion of women using payday loans, which have historically been used more by men, has increased to 23%, with nearly half of borrowers being single mothers.

You can download a copy of the report here: http://bit.ly/the-debt-trap-report

Payday lenders charge exorbitant fees. Some loans can have an effective interest rate of over 400% per annum. Responsible lending laws are far too easy to avoid. ASIC regulatory action shows that payday lenders aren’t complying with these laws.

Clearer laws are needed to regulate payday loans, as recommended by the Small Amount Credit Contracts Review, which the Government committed to implement.

As my Federal representative, I am asking if you will champion protections for people who use payday loans by calling for stronger laws to be introduced into parliament by the end of the year?

In order to be effective, the new laws should cap the amount of income that payday lenders and consumer lease companies can take of your income each fortnight to pay off these debts. This cap should be set at 10% to make sure people have enough money to live on. There should be a cost cap on the amount that can be charged by consumer lessors can charge—lessors should not be able to charge up to five times the value of the goods.

I look forward to receiving your response to this important matter.

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