Kristy Robson, a managing financial counsellor at the Consumer Action Law Centre, said the growth in lending had been accelerated by automatic online loan approvals.
“The frictionless approval processes are damaging people’s financial capacity,” Robson said.
“It’s become so automated that individual customers’ circumstances aren’t being considered appropriately and they’re getting same-day approval on massive personal loans that they’re reaching for because they’re in financial hardship.”
The national debt helpline has seen an increase in people calling in with issues due to personal loans, Robson said.
“People really are struggling to make it through,” she said. “How, with the responsible lending laws, are they possibly getting approved?”
It doesn’t help that payday loans have been rebranded as “pay advances” or “cash advances” (trying to distance themselves from negative connotations) and have flashy mobile apps that can give you the money instantly. They’re not banks, so they don’t get regulated the same way that banks do.
You/we need to speak up about this.
It also reminds me of sports betting and its apps which make it easy and addictive to use them.
