Cash Converters loans

I am concerned for a member of the community who has easy access to Cash Converters loans. The person in question is a disability pensioner who can barely afford to borrow money. They have asked ‘Cashies’ to ban them from borrowing more money, but have been advised that this is not possible. Is there anything CHOICE can do to investigate this?

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Sorry to hear about the problems for your friend @liz.posmyk. It’s an interesting topic, and I’ve passed it on to the investigations team. If anyone else has an experience with this type of lending, please leave a comment.

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Thank you very much! They make it way too easy for those at risk to borrow money… not one loan but several at once! Please don’t use my name if possible. Thank you.

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You might have your friend see your local Financial Counsellor, located at many Community Agencies. The service is Free. More information available from Consumer Affairs, ASIC or http://www.financialcounsellingaustralia.org.au/Home.

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Payday lenders, including Cash Converters, often lend money to people who can’t really afford to pay it back. It is good advice to see a financial counsellor - one of the things the financial counsellor can do is check to see if the lending by Cash Converters met the responsible lending tests in the credit laws. If the loans breached those laws (because the person could not afford to pay it back), it is possible that Cash Converters would have to refund all interest and fees.

Interest on payday loans, like those from Cash Converters, is over 200% per annum.

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The payday loan industry is indeed out of control. I humbly add these links that may explain the current state of play - and your rights - further.

https://www.choice.com.au/money/credit-cards-and-loans/personal-loans/articles/payday-lenders

https://www.choice.com.au/money/credit-cards-and-loans/personal-loans/articles/payday-lender-the-cash-store-slapped-with-record-penalty-230215

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Yes, thank you. I did suggest that, but they do not want to do so.

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Cash Converters to pay $42.5 million to settle class action.

Great to see.

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Still not enough though. Where were the Laws to stop it happening in the first place, does the settlement come anywhere near the level of distress the behaviour caused. I think the level does not meet the nature of the cause but rampant capitalism still rules and so I don’t think fair will ever come into these settlements.

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