Qld: Consumer code bites loan sharks

AAP General News (Australia)
12-09-2001
Qld: Consumer code bites loan sharks

Loan sharks in Queensland will face fines of up to $10,000 when a loophole in credit
law closes tomorrow.

Queensland Fair Trading Minister MERRI ROSE says fringe credit providers have exploited
Consumer Credit Code exemption laws, particularly in the past five years.

In one case, a couple borrowed $120 and ended up repaying $952, while another customer
took out a $50 pay-day advance and owed $900 within 10 months.

From tomorrow, lenders offering cash loans at enormous interest rates to battlers struggling
between pay days will come under the Consumer Credit Code.

Under the amendments, lenders must tell borrowers all fees, charges and terms and state
whether security is needed, contracts must be written, and lenders have to assess whether
borrowers have capacity to repay a loan.

AAP RTV jcs/pjo

KEYWORD: CREDIT (BRISBANE)

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