ASIC ACTION IS A CLEAR REMINDER TO THE PRIME MINISTER TO ACT ON DODGY SMALL AMOUNT CREDIT CONTRACTS

ASIC’s decisiontoday to fine ‘The Rental Guys’ for failing to meet responsible lending obligations is a clear and urgent reminder to Malcolm Turnbull that he must deliver on his government’s promise to reform small amount credit contracts legislation and protect some of the most vulnerable in our community.

 

It’s been more than a year since the Turnbull Government received a report urging action to reform small amount credit contracts and despite this, we have seen no action from the Prime Minister to protect consumers from being ripped off.

 

We believe that protecting consumers from dodgy lenders and consumer leases should be a high order priority but unfortunately this government seems to have a different view.

 

“Just this week I was on the Gold Coast listening to staff at the Good Money Shop in Southport who recounted story after story where vulnerable people had been convinced by unscrupulous lenders to sign up for contracts they couldn’t afford or that left them in a far worse financial position than where they began,” Katy Gallagher said.

 

Labor is particularly concerned that some companies are taking advantage of Indigenous communities like those that have been highlighted in this latest case that was investigated by ASIC.

 

Malcolm Turnbull needs to show some leadership and explain when he will release legislation to crack down on these dodgy lending practices as his government has previously promised to do.