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BERKELEY INSTANT CASH ‘DEBT TRAP’ MACHINE TO BE BANNED

November 21, 2018

Under a new law to be introduced into the New South Wales Parliament, the instant cash loan machine at Berkeley – labelled a ‘debt trap’ by Wollongong MP Paul Scully -  would be banned.

 

NSW Labor has given notice to introduce legislation to outlaw predatory cash loan machines in NSW.

 

The machines are popping up in many suburbs across the NSW and prey on struggling individuals and families doing it tough by offering “Small Amount Credit Contracts” that trap low income earners in vicious debt cycles.

 

Payday lenders can have comparison rates anywhere between 112% and 407%.

 

Instant cash loan machines target low income individuals and families with loans of between $50 -$1000. The limits increase when users access machines multiple times.

 

Federal Labor introduced a Bill that to minimise harm of payday loan products at a Federal Level in February.

 

 

Comments attributable to Paul Scully MP:

 

“These payday lending machines are debt traps for low and middle income families.

 

“The financial providers rely on desperate people needing cash instantly while loading them up with debt that many can never escape.

 

“Interest rate charges are extraordinary.

 

“NSW Labor has introduced legislation into Parliament this week, which if passed with the support of the Government, would outlaw these predatory machines from any location in NSW.

 

“The existing debt trap cash loan machine at Berkeley would be banned.

 

“Federal Labor has introduced similar legislation in the Federal Parliament.

 

“We can’t allow these debt traps to continue to exist, making life hell for financially desperate people and families who will be stuck with sky high interest charges.”

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