Govt policy might be helping loan sharks!

Hamish Rutherford reports:

Customers who need emergency loans, say for car repairs or medical bills, are discovering the process is so lengthy and uncertain, one banking figure said, that they are better off going to high-interest payday lenders.

If that seems ironic, it might be topped. One banking figure said he had heard examples of a customer wanting to consolidate their borrowing with loan sharks into a personal loan with a bank, but being told the bank could not approve the loan because of the CCCFA.

So the Government says the CCCFA was designed to protect people from loan sharks, but because they didn’t listen to the multiple warnings it was too wide, it now may end up driving people from banks to loans sharks!