New Payday Loan Laws Will Give Greater Comfort to Borrowers 06 May 2009 by Sean Teahan in Founders Blog

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Last week, the Minister for Superannuation and Corporate Law, Nick Sherry released a draft of the new legislation designed to increase responsible lending to Australian consumers.

What does it all actually mean for customers?

Well, firstly, lenders have to be licensed by ASIC and to get a licence, they need to observe ?responsible lending? guidelines. This should give you extra peace of mind, as only lenders who ARE doing a good job will be licensed, reducing the risk of the unknown. Unlicensed lenders will, by definition, be criminal - so avoid them!

Lenders will give you lots more information up front, allowing you make a truly informed decision and there'll be none of those hidden fees and charges. Also, if you're not happy with the loan, all loan companies will have to be a member of an External Dispute Resolution Scheme to help sort out any disagreements.

You'll need to provide lenders with slightly more information than you do now before getting a loan - including why you want the loan; any other credit you have; and if you a... Read More »