Support Fair Finance - change the law

Support Fair Finance - change the law

Draft legislation to make payday loans and consumer leases (rent-to-buy) financially safer has been released for comment. We need your help now to get these important reforms over the line.

To make this Parliamentary vote an emphatic YES, please use this form to write a supportive email to your local Member of Parliament – and get these reforms made law.

The reforms will tackle predatory lending by:

  • Limiting repayments for payday loans and consumer leases so that no person can spend more than 10% of their net income on either product*.
  • Placing a cost cap on what providers can charge for ...

Draft legislation to make payday loans and consumer leases (rent-to-buy) financially safer has been released for comment. We need your help now to get these important reforms over the line.

To make this Parliamentary vote an emphatic YES, please use this form to write a supportive email to your local Member of Parliament – and get these reforms made law.

The reforms will tackle predatory lending by:

  • Limiting repayments for payday loans and consumer leases so that no person can spend more than 10% of their net income on either product*.
  • Placing a cost cap on what providers can charge for consumer leases for the first time, at 4% of the retail price per month for a maximum of 48 months.

These reforms aim aim to ensure that repayments aren't unaffordable on payday loans that attract comparison interest rates of between 407% and 112% and reduce the obscene cost of some consumer leasesthe Government regulator ASIC found a clothes dryer with an equivalent interest rate of 884%.

The payday lenders and the consumer lease providers are trying to stop these reforms from passing into law.  We need your help - please tell your MP that you support Fair Finance today, and show your support for better laws to control these expensive and exploitative financial products. Every email sent gets us closer to better laws.

If you have a personal experience with unaffordable payday loans or consumer leases, that affected you, a family member, or someone you have helped through your work, please consider including that story with your email. It will help your MP understand the real harm these products are causing.

* This measure will be incorporated in regulations that sit alongside the Parliamentary Bill

 

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