NSW: Govt cracks down on loan sharks

AAP General News (Australia)
04-03-2001
NSW: Govt cracks down on loan sharks

The New South Wales government is set to introduce new laws preventing short-term loan
sharks from charging interest rates of up to 1,300 per cent.

Fair Trading Minister JOHN WATKINS says current legislation capping interest rates
at 48 per cent does not apply to so-called pay day lenders.

He says the government wants to introduce new laws in coming weeks which will stop
pay day lenders getting away with charging exorbitant interest rates.

He says a loophole under the unified code means loans of less than 62 days are not
subject to the normal consumer protection measures.

Mr WATKINS says pay day lenders have been charging effective interest rates of up to
1,300 per cent.

And, he says the number of 40 known pay day lenders in New South Wales has exploded
in recent months.

AAP RTV sal/jjs/wz/alt

KEYWORD: LENDERS (SYDNEY)

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