Good Shepherd Microfinance, Australia’s biggest microfinance organization, has welcomed the Australian Government’s review into high expense pay day loans and customer leases, better referred to as ‘goods rental’ or ‘rent to own’.
Through its system of 1,500 microfinance employees in 670 places across Australia, Good Shepherd Microfinance and its own community lovers hear firsthand the results of those high price services and products.
Chief Executive Officer, Adam Mooney, said “the big most of individuals on low incomes just can’t manage to be having to pay such a premium for credit or a lease”.
“We are simply because the negative effect of pay day loans and ‘rent to possess’ is disproportionately impacting women that usually look to these items because of earnings inequality and monetary exclusion,” said Mr Mooney.
“That is, being not able to work due to carer duties, being paid less, or being underemployed through adjustable short-term casual or contract arrangements that are increasing into the wellness, education and community sectors.
“Payday loan providers are wanting to let you know exactly exactly how quickly they are able to have the funds in your account and exactly how fast you’ll be authorized, but just what they’re attempting to do is entangle the debtor in endless high priced credit.”
“By constantly extending the credit, a debtor is kept without sufficient cash to cover day-to-day cost of living such as for instance meals and bills, which frequently contributes to poverty that is entrenched” said Mr Mooney.