Published on October 12, 2017 1:04 am, by Pete Lalor
Today ASIC announced enforceable undertakings from two pay day lenders which will see them write off some of their outstanding loans and stop offering certain products to new customers.
The Enforceable Undertakings are from Good to Go Loans Pty Ltd and Web Moneyline Pty Ltd and the loans are known as OACC2 loans.
According to ASIC, both lenders provided the loans to customers on terms that fell outside the definition of a small amount credit contract. However, on the same day customers entered into the contracts, the contracts were modified to require higher payment amounts over a shorter period of time. This may have resulted in customers being charged above the cap on fees and charges allowable under the National Credit Act.
Under the Enforceable Undertakings both companies are required to:
If you have such a loan, you should receive correspondence from the company, but you can also contact the Financial Ombudsman Service (FOS) on 1800 367 287 or firstname.lastname@example.org. you can also get free and independent advice from a financial counselor by ringing the National Debt Helpline on 1800 007 007.
We know Pay Day lenders are serving a big financial need in the community – if there was no need there would be no business. But the terms and conditions offered by these lenders are usually outrageous and there are other options.
Some options include:
For further information you can read the ASIC announcements here:
Peter is the CEO of MoneyBrilliant. He has over 20 years experience in banking, insurance and accounting. Peter has three sons, ranging in age from 16 to 3, is a sport and fitness fanatic and a volunteer firefighter. He is passionate about improving people's lives through making financial services more accessible.