Qld: Govt investigates loan shark laws loophole

AAP General News (Australia)
08-17-2008
Qld: Govt investigates loan shark laws loophole

BRISBANE, Aug 17 AAP - The Queensland government is investigating a suspected loophole
in new laws designed to protect consumers from high interest payday lenders.

The Consumer Credit and Other Acts Amendment Bill 2008 forces payday lenders to cap
the total cost of rates, fees and charges at 48 per cent, or face fines of up to $500,000.

But The Courier Mail newspaper yesterday reported the statewide chain Cash Converters
was writing loans under pawnbroking laws which do not attract the rate cap.

The move allowed the stores to charge effective interest rates of up to 420 per cent
on short-term loans, the newspaper claimed.

Premier Anna Bligh today said the government was looking into the loophole.

"I have one clear message for them, people will be out there enforcing the law and
if the law needs any amendment then we won't hesitate to do so," Ms Bligh told reporters
in Brisbane today.

"Like any law, once it's out there being implemented, if we find any need to improve
it then we'll do so. It's only two weeks old.

"Many of the people who are involved in payday lending are, frankly, quite unscrupulous
people, and I'm not surprised to see that some of them might be acting in an unscrupulous
way."

AAP gd/jt/cdh

KEYWORD: PAYDAY

2008 AAP Information Services Pty Limited (AAP) or its Licensors.