Loan sharks slip through net in Queensland, still blackmailing desperate borrowers
Legal Aid Queensland has revealed that as well as securing short-term loans against cars and homes, payday lenders have staked claims over entire household possessions including beds, electronic equipment and kitchen items.
A document from LAQ also reveals loans as small as $800 have been secured over cars.
The short-term loan industry hit back yesterday, saying such securities were "rare".
Legal aid has provided a parliamentary inquiry with a table revealing how 18 lenders took security over small loans in the past four years.
The details, submitted by Queensland Senior Legal Aid solicitor Catherine Uhr, reveal how one loan for $1000 in 2009 was secured over two cars, while two loans in 2007 were secured over homes.
The industry is lobbying the Federal Government to water down proposed laws for short-term lenders which will introduce a national cap of 2 per cent interest per month on loans under $2000. The new legislation is designed to stop lenders taking out security against loans under $2000.
Financial Counselling Australia executive director Fiona Guthrie said securities over household goods were considered "blackmail securities".
"The lender knows that the price of these goods if sold would be next to nothing - the leverage in having the ability to seize them is simply a form of blackmail," Ms Guthrie said.
A spokesman for Assistant Treasurer Bill Shorten said the issues around securities for small loans was "another example of why the industry needed to be reined in".
"This Government is determined to ensure consumers are protected from unscrupulous practices in the pay day lending industry," he said.
Cash Converters spokesman Glenn Donaldson said it was misleading to suggest taking securities over small loans was the norm for the industry.
"These one off examples aren't indicative of any of our stuff," Mr Donaldson said.
get out of payday loans - News
Studies of borrowing patterns show the vast majority of customers are so broke that once they take out a first loan, it almost always leads to more loans. That piles fee upon fee until significant portions of the borrowers' already-low income goes to
"Look over there -- payday loans,'' says the spokeswoman for San Jose-based Opportunity Fund, a Bay Area-based microlending nonprofit that helps small businesses get off the ground or expand. "And there's a check-cashing place on the corner.
"They must have money," she said. Her family is middle class. But with a child in college the bills pile up. Payday loans help her avoid late-payment fees and dings to her credit. Eliminating payday loans "would jeopardize a lot of people," she said,
She said businesses offering short-term loans have high interest rates that keep financially strained customers trapped in a cycle of making interest-only payments. Secondly, she said, the presence of too many of these businesses repel other commercial
An import from the US, they generally charge about £25 for every £100 borrowed with the money repaid within 28 days, ie on your next payday. However, charges can spiral if repayments aren't made on time and payday loans have typical APRs of 1300 per
4 Do-It-Yourself Suggestions On Getting Out Of Your Payday Loans ...
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Payday loans have become the household name during this trying time. With the quick cash that such loans provide many individuals have come to see these loans as the solution to their emergency needs. Hence, many people have become overwhelmed with debt, and are in dire need of help to get out of it.
Getting out of fast cash advance loans debt is not a difficult task, and if you will just set your mind onto it, you can get rid of your debt. You can find many ways and measures that you can do in a Do-It-Yourself manner, and in addition to that, this article contains some tips on the services that you can use as debt help.
Moving on to solutions in getting out of payday loans, you can find that there are several services that you can use to get out of debt. These services include debt settlement companies that provide you a way out in favor of the commission and debt consolidation facilities . However, it is recommended that you should get rid of your payday loan debt on your own. Doing -it- yourself is a great help because you don’t need to spend few dollars for commission or take a risk. Here are some suggestions for getting out of quick cash loans. However, remember that getting rid of your debt is a process; therefore, don’t expect an instant result.
1. If you will ask around, you will find out that most of the people will suggest that you should get some debt advice, consultancy or help. These are all legitimate idea, but consultancy requires money in the form of commission. You want to get out of debt because you are financially burdened, and getting into consultancy entails additional expenses. So, the best thing to do is go back to your savings account. Check your current finances and determine how much is your debt, how much do you expect on your next paycheck, and how much fines will you need to pay the lenders.
2. Then, make the what we call pro-rata allotment to your creditors. Pro-rata allotment is simply a schedule for repaying the lenders, and it is just easy to make. Settle the payday loans that have long overdue and the ones which generate highest rate fines. Make a table having three columns. On the first column, write the name of the lender with the account number. On the second column, place the months or period, and on the third column, write the fines. Arrange your debts in a descending order, placing the largest amount on the first rank.
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