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Payday lenders labelled 'loan sharks'

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Australian Broker | 09 Dec 2011, 04:00 AM Agree 0
Social welfare charity Anglicare has slammed a government report on payday lenders, and has called the lenders "loan sharks"
  • Bruce Gibbons, past president Finance Brokers Asso | 09 Dec 2011, 09:54 AM Agree 0
    Ms King's (of Anglicare)comments are as outrageous as they are ill-informed. (reputable) Pay-day lenders form an integral part of the financial market. They assist struggling consumers, where mainstream lenders turn their back.
    The proposed 48%pa limit is a joke, and will render the industry unviable. These people needing money for urgent medical attention will have nowhere to go, and be denied all assistance.
    Do the sums - If they lent someone $200, for one week, at 48%pa, the Pay day Lender will get $1.84 interest earn. Would you, Ms.King, or any other do-gooder, lend your money, to someone you've never met before, $200 to earn $1.84 for the risk/return. Open your eyes lady, there's a bigger picture out there.
    Bruce Gibbons,
    past President, Finance Brokers Association.
  • Loan Shark | 10 Dec 2011, 04:20 PM Agree 0
    If it is okay for Ms King to sling around abusive labels such as loan sharks, would she mind if Anglicare and similar organisations can collectively be referred to as beggars?
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