OZschwitz: Fascist Queensland government attacks benevolent lenders who only charge up to 420 per cent on short-term loans

The Queensland government is investigating a suspected loophole in new laws designed to protect consumers from high interest payday lenders.

The Consumer Credit and Other Acts Amendment Bill 2008 forces payday lenders to cap the total cost of rates, fees and charges at 48 per cent, or face fines of up to $500,000.

But The Courier Mail newspaper yesterday reported the statewide chain Cash Converters was writing loans under pawnbroking laws which do not attract the rate cap.

The move allowed the stores to charge effective interest rates of up to 420 per cent on short-term loans, the newspaper claimed.

Premier Anna Bligh today said the government was looking into the loophole.

"I have one clear message for them, people will be out there enforcing the law and if the law needs any amendment then we won't hesitate to do so," Ms Bligh told reporters in Brisbane today.

"Like any law, once it's out there being implemented, if we find any need to improve it then we'll do so. It's only two weeks old.

"Many of the people who are involved in payday lending are, frankly, quite unscrupulous people, and I'm not surprised to see that some of them might be acting in an unscrupulous way."

LNK

Quote :: Fascist Queensland government attacks benevolent lenders who only charge up to 420 per cent on short-term loans

OZschwitz: Fascist Queensland government attacks benevolent lenders who only charge up to 420 per cent on short-term loans Muttley

OZschwitz: Fascist Queensland government attacks benevolent lenders who only charge up to 420 per cent on short-term loans

OZschwitz: Fascist Queensland government attacks benevolent lenders who only charge up to 420 per cent on short-term loans

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