If the federal government refuses to raise the Newstart rate and proposes to drug-test welfare recipients, the least it could do is crack down on payday lenders "preying" on vulnerable people, according to a community lending organisation.
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No Interest Loans Network of Tasmania chief executive John Hooper said payday lenders like Nimble, Cash Converters and Wallet Wizard, as well as consumer lessors like Radio Rentals and Oze Rentals, had a business model founded on offering access to "fast money" to "desperate" people.
Mr Hooper's comments came as a coalition of interest groups, led by the Consumer Action Law Centre, descended on Canberra for a "national day of action", calling on the federal parliament to enact laws to combat the business practices of payday lenders and consumer lessors.
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Some of the loans offered by these companies can require borrowers to pay between 112 per cent and 407 per cent interest.
"People approach [these companies] when they're in need and they need access to quick money, which usually means people are at a bit of a desperate point," Mr Hooper said.
"These guys are private businesses - I get that they've got to make a margin.
"But an $800 fridge shouldn't cost you $2400 and you still don't potentially own it at the end."
Mr Hooper said pay day loans and consumer leases needed to be capped in terms of the amount that can be garnished from a borrower's income.
"If [the government] won't lift Newstart and they're considering the drug-testing of welfare [recipients], then surely an action they could do is to prevent organisations preying on people on Newstart and their desperation," he said.
The findings of a review of small amount credit contracts (SACC) were handed down in 2016 and made a number of recommendations pertaining to the regulation of payday lenders and consumer lessors, including a cap on the total amount of payments to be made under a consumer lease of household goods.
The government accepted the findings and legislation was drafted to implement reform - but this since appears to have been shelved.
Consumer Action is calling on the Coalition to introduce the legislation to Parliament before the end of the year.
Assistant Treasurer Michael Sukkar said the government was currently considering public submissions to consultation on a "suite" of reforms to SACCs and consumer leases.
"We recognise the need for reform in these areas and that reforms must strike the right balance in enhancing consumer protection, while also ensuring these products and services can continue to fulfil an important role in the economy," he said.
Australian Greens consumer affairs and finance spokesman Peter Whish-Wilson said "the least this government should be doing is implementing the findings of its own review".
"This government needs to pull its finger out and get on with this legislation," Senator Whish-Wilson said.