The corporate regulator has announced a crackdown on short-term lenders who target vulnerable Australians with fees that can go close to a thousand per cent of a loan amount.
ASIC has targeted two firms, Cigno and Gold-Silver Standard Finance, under its new product intervention powers where consumers from low socio-economic groups can be hit with 990 per cent interest on loans. The regulator has identified"significant consumer harm" where often desperate Australians take out high interest loans just to make ends meet.
Those sort of lenders have no place in society. Valid emergency funding can always be obtained from a regulated bank.
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