Predatory lenders 'stealing beds' from debtors

Thursday 30 April 2009

Article by Mozo

In the week that the Rudd government announced a package of measures to help Aussies keep up with home loan and credit card payments, it has emerged that predatory lenders are making a killing out of those most in need.

News.com.au has spoken to NSW Consumer Credit Legal Centre’s chief solicitor Katherine Lane and reports that some Aussies are even under threat of losing their beds to lenders offering credit with sky-high interest rates.

"I spend all day talking to people who are crying. The term ‘payday loan’ doesn’t quite cover it, because no one can ever pay it off in two weeks," she claimed.

She went on to call for laws banning debt collectors from taking beds and other household items as payment for the soaring interest on these types of loans.

Aussies struggling with home loan payments have this week been told that the government will pay for legal support for those who can’t persuade their bank to relax their repayment arrangements.

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