A MAN who claims he was trapped in a debt nightmare after being recklessly granted dozens of payday loans has launched a legal challenge against Cash Converters.   :-?

Disability support pensioner Ronald Hayes claims he was forced to rely on food handouts after he was given at least 64 payday loans in three years.   :(

The Consumer Action Law Centre says Australia's biggest short-term lender will be put under the microscope in the Magistrates' Court.

Mr Hayes alleges that two Cash Converters companies breached consumer credit laws.

But Cash Converters spokesman Glenn Donaldson said that the company would vigorously defend any allegations that it had engaged in predatory or unfair behaviour.

Mr Hayes says he had to rely on family, friends and charities for food as his pension was eroded by loan repayments.  

"Sadly, consumer organisations like ours see cases like this on a regular basis," Consumer Action chief Catriona Lowe said.   :(


"People take out a loan to help pay their bills, but when the repayments are direct-debited out of their account, they find they don't have enough money left to live off and they go back for another loan."   :(

The payday lending industry is fighting a Federal Government proposal for a cap on fees and interest.

Critics say that a typical payday loan has an annualised interest rate of more than 400 per cent.   :o

Cash Converters makes Shylock look like a nice guy ;)

Can you believe that Cash Converters is a publicly listed company on the Australian Stock Exchange !!

Just remember that the next time you walk into a Cash Converters store and see a second hand drill 3 times the price of what you can buy a new one in Bunnings :D LOL


Quote:

Cash Converters International (CCV) is a franchised retail network listed on the ASX and London Stock Exchange. It specialises in the sale of second-hand goods. The Cash Converters group employs modern retailing practices, professional management techniques and high ethical standards to the management of its stores throughout the chain which appeal to a wide cross section of the community. As a result, Cash Converters has been able to position its outlets as credible retail merchandise stores, resulting in a profitable market for the group. The range of services offered by Cash Converters stores around the world varies with pawn-broking loans available in selected markets, as well as a personal finance business that operates, in various forms in the micro-lending category around the world.

Quote:

Critics say that a typical payday loan has an annualised interest rate of more than 400 per cent.

That's criminal.

Annie Anthrax wrote on Oct 31^st, 2011 at 10:47am:

Quote: Critics say that a typical payday loan has an annualised interest rate of more than 400 per cent.   That's criminal.

It can't be, crime doesn't pay ;D

Well, in order to get those loans, he must have been able to prove that he could afford to repay them....

If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)...

It is Cash Converters fault that they charge such exorbitant interest to desperate people.

Annie Anthrax wrote on Oct 31^st, 2011 at 11:02am:

It is Cash Converters fault that they charge such exorbitant interest to desperate people.

Not really......any short term loan has high interest, because they aren't measured over years, rather weeks or months...

Even a pawn broker runs at about 300% to 600%, because the term is usually 30 to 60 days....

gizmo_2655 wrote on Oct 31^st, 2011 at 10:55am:

Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)...

what is the proof then ??

Sir lastnail wrote on Oct 31^st, 2011 at 11:13am:

gizmo_2655 wrote on Oct 31st, 2011 at 10:55am: Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)... what is the proof then ??

Have you ever applied for a loan, either short or long term, nails??

The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income....

Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00)

Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them....

gizmo_2655 wrote on Oct 31^st, 2011 at 11:08am:

Annie Anthrax wrote on Oct 31st, 2011 at 11:02am: It is Cash Converters fault that they charge such exorbitant interest to desperate people. Not really......any short term loan has high interest, because they aren't measured over years, rather weeks or months... Even a pawn broker runs at about 300% to 600%, because the term is usually 30 to 60 days....

So?

Just because other short term loans charge similar interest rates doesn't make it okay; it just shows the problem is widespread.

Annie Anthrax wrote on Oct 31^st, 2011 at 11:22am:

gizmo_2655 wrote on Oct 31st, 2011 at 11:08am: Annie Anthrax wrote on Oct 31st, 2011 at 11:02am: It is Cash Converters fault that they charge such exorbitant interest to desperate people. Not really......any short term loan has high interest, because they aren't measured over years, rather weeks or months... Even a pawn broker runs at about 300% to 600%, because the term is usually 30 to 60 days.... So? Just because other short term loans charge similar interest rates doesn't make it okay; it just shows the problem is widespread.

Yeah, maybe.....but still, why would you keep getting the loans if you have problems making the repayments??

Because he needed to meet living expenses and had even less to do it than when he was originally in trouble because of the chunk going to Cash Converters. Says so in the article:



Quote:

"People take out a loan to help pay their bills, but when the repayments are direct-debited out of their account, they find they don't have enough money left to live off and they go back for another loan."

Poverty is such a vicious cycle - poor people chase their own tails and end up paying more for many things that others take for granted...

Being late to pay utility bills attracts escalating fees and/or interest penalties - as does making small cash and eftpos withdawals...

Pre-paid phone and internet contracts typically cost much more...

Poor people don't have the cashflow to avoid interest on credit accounts - and/or pay day lending...

Poor people can't afford to buy and store food and other groceries in bulk to take advantage of specials - and often end up paying inflated prices at local shops...

Many poor people (those who can afford a car in the first instance) top their petrol tanks in small increments and only when the red light comes on - often when petrol is at its most expensive...

Most poor people either cannot afford insurance at all - or end up paying more for the 'privilege' of paying by the month...

All of this cumulative financial disadvantage places untold stress on individuals and families...

gizmo_2655 wrote on Oct 31^st, 2011 at 11:28am:

Yeah, maybe.....but still, why would you keep getting the loans if you have problems making the repayments??

Desperation!

Equitist wrote on Oct 31^st, 2011 at 11:39am:

gizmo_2655 wrote on Oct 31st, 2011 at 11:28am: Yeah, maybe.....but still, why would you keep getting the loans if you have problems making the repayments?? Desperation!

Yah, but let's not forget stupidity either....

Equitist wrote on Oct 31^st, 2011 at 11:35am:

Poverty is such a vicious cycle - poor people chase their own tails and end up paying more for many things that others take for granted... Being late to pay utility bills attracts escalating fees and/or interest penalties - as does making small cash and eftpos withdawals... Pre-paid phone and internet contracts typically cost much more... Poor people don't have the cashflow to avoid interest on credit accounts - and/or pay day lending... Poor people can't afford to buy and store food and other groceries in bulk to take advantage of specials - and often end up paying inflated prices at local shops... Many poor people (those who can afford a car in the first instance) top their petrol tanks in small increments and only when the red light comes on - often when petrol is at its most expensive... Most poor people either cannot afford insurance at all - or end up paying more for the 'privilege' of paying by the month... All of this cumulative financial disadvantage places untold stress on individuals and families...

!!

gizmo_2655 wrote on Oct 31^st, 2011 at 11:28am:

Yeah, maybe.....but still, why would you keep getting the loans if you have problems making the repayments??

Sadly and ironically, even the wealthiest, biggest and best-resourced corporations and countries can fall into this debt trap - hence the current GFC!

So, it is unsurprising that those individuals who are most vulnerable and unskilled find themselves riding the debt merry-go-round just for the basics of life, eh!?

Quote:

Yah, but let's not forget stupidity either....

Are poor people generally stupid?

Annie Anthrax wrote on Oct 31^st, 2011 at 11:45am:

Quote: Yah, but let's not forget stupidity either.... Are poor people generally stupid?

Hmmnnn....payday lenders are probably entering into unfair contracts with those who are.....

Annie Anthrax wrote on Oct 31^st, 2011 at 11:45am:

Quote: Yah, but let's not forget stupidity either.... Are poor people generally stupid?

Some are, some aren't....
For example, I'm currently living on $255.00 per fortnight (after rent, bills etc).....usually works out to be about $155.00, if I overdraw my bank.....
But I STILL wouldn't get that many 'payday' loans......

it works out to be 21 loans per year, out of 26 fortnights per year over 3 years...

Budgeting is the thing...

And don't you think banks make enough money without charging extra fees to people who are struggling and have to overdraw? I'm sure you don't do it for the fun of it. It is a system that targets the vulnerable.

Annie Anthrax wrote on Oct 31^st, 2011 at 12:03pm:

And don't you think banks make enough money without charging extra fees to people who are struggling and have to overdraw? I'm sure you don't do it for the fun of it. It is a system that targets the vulnerable.

Ahh but it's NOT a 'bank loan' though...A bank loan would have been at the 'standard' rate of 6% or 8%....providing he could meet the loan criteria....

It's a 'storm in a teacup' deal....He (fairly) obviously couldn't get a normal bank loan, so he went to the higher interest sector....who's fault???

As for me, I know, going in, that the interest chharges are somewhat punitive, but I accept that, and don't blame the bank, I blame ME....

I was talking about the fees you say you are charged when you are forced to overdraw your account...

gizmo_2655 wrote on Oct 31^st, 2011 at 11:19am:

Sir lastnail wrote on Oct 31st, 2011 at 11:13am: gizmo_2655 wrote on Oct 31st, 2011 at 10:55am: Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)... what is the proof then ?? Have you ever applied for a loan, either short or long term, nails?? The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income.... Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00) Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them....

And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !!

Annie Anthrax wrote on Oct 31^st, 2011 at 12:11pm:

I was talking about the fees you say you are charged when you are forced to overdraw your account...

Yes, I'd love them to be lower....but they aren't, so my fault, my problem...

gizmo_2655 wrote on Oct 31^st, 2011 at 12:03pm:

Budgeting is the thing...

Ye and me know that this is good in theory but bloody difficult in practice - especially when funds are limited and basic living costs are so high...

More so when there's kids involved!

Sir lastnail wrote on Oct 31^st, 2011 at 12:12pm:

gizmo_2655 wrote on Oct 31st, 2011 at 11:19am: Sir lastnail wrote on Oct 31st, 2011 at 11:13am: gizmo_2655 wrote on Oct 31st, 2011 at 10:55am: Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)... what is the proof then ?? Have you ever applied for a loan, either short or long term, nails?? The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income.... Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00) Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them.... And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !!

Quite possibly...Some people DO make those statements....either through ignorance or intent...It happens....

Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families.

People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame?

Annie Anthrax wrote on Oct 31^st, 2011 at 12:17pm:

Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families. People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame?

Simple.... I 'do' occasionally go over my budget.....as do most people....Buying more than I can actually afford is no-ones fault but mine....

As with any other 'error', how can it be anyone else's fault???
If I choose to buy a case of beer or a extra pack of smokes....why should I blame the bank??? No one 'forced' me to do so....Personal responsibility is a valid idea....

Equitist wrote on Oct 31^st, 2011 at 12:13pm:

gizmo_2655 wrote on Oct 31st, 2011 at 12:03pm: Budgeting is the thing... Ye and me know that this is good in theory but bloody difficult in practice - especially when funds are limited and basic living costs are so high... More so when there's kids involved!

Of course...(fortunately I don't have kids, only a cat...but it's still MY choice).....

Simply put, if you can't afford it...DON'T do it....

gizmo_2655 wrote on Oct 31^st, 2011 at 12:21pm:

Annie Anthrax wrote on Oct 31st, 2011 at 12:17pm: Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families. People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame? Simple.... I 'do' occasionally go over my budget.....as do most people....Buying more than I can actually afford is no-ones fault but mine.... As with any other 'error', how can it be anyone else's fault??? If I choose to buy a case of beer or a extra pack of smokes....why should I blame the bank??? No one 'forced' me to do so....Personal responsibility is a valid idea....

I give up :)

Annie Anthrax wrote on Oct 31^st, 2011 at 12:27pm:

gizmo_2655 wrote on Oct 31st, 2011 at 12:21pm: Annie Anthrax wrote on Oct 31st, 2011 at 12:17pm: Think about what you're doing. Do you see how ironic it is that you consistently defend a system that is completely ripping you off? The overdraw fees and the high interest short term loans are the straws that break the backs of families. People that earn massive amounts of money making decisions to actively target the vulnerable. How can you defend that? And even accept blame? Simple.... I 'do' occasionally go over my budget.....as do most people....Buying more than I can actually afford is no-ones fault but mine.... As with any other 'error', how can it be anyone else's fault??? If I choose to buy a case of beer or a extra pack of smokes....why should I blame the bank??? No one 'forced' me to do so....Personal responsibility is a valid idea.... I give up :)

Nah, don't give up.....it's about you're own choices...

It's like any thing else...drink driving is a good example...If I go to a pub or club and drink too much, is it the fault of the police officer who catches me driving home drunk, or is it my fault my fault for 'trying' to drive home drunk???

If I 'do the crime' shouldn't I' do the time???

As my father used to say..." You're free, white and over 21"

Translation, 'If you are dumb enough to get into that situation, it's YOUR fault'......

Quote:

It's like any thing else...drink driving is a good example...

No it's not.

I would think that people who overdraw do so for necessities like food, medicine and bills. They are then slogged with a punishment - a punishment for not having enough money. It's not right.

In all truth, I don't see why I should 'blame' you (for example) for MY stupidity....

Annie Anthrax wrote on Oct 31^st, 2011 at 12:41pm:

Quote: It's like any thing else...drink driving is a good example... No it's not. I would think that people who overdraw do so for necessities like food, medicine and bills. They are then slogged with a punishment - a punishment for not having enough money. It's not right.

Granted...the newstart payment isn't quite enough to live on...but if that's all you have, then change your living standards....

gizmo_2655 wrote on Oct 31^st, 2011 at 12:41pm:

In all truth, I don't see why I should 'blame' you (for example) for MY stupidity....

An inability to meet needs doesn't automatically translate to stupidity.

It is kinder to not allow overdrawing at all than to kick people when they're down.

gizmo_2655 wrote on Oct 31^st, 2011 at 12:42pm:

Annie Anthrax wrote on Oct 31st, 2011 at 12:41pm: Quote: It's like any thing else...drink driving is a good example... No it's not. I would think that people who overdraw do so for necessities like food, medicine and bills. They are then slogged with a punishment - a punishment for not having enough money. It's not right. Granted...the newstart payment isn't quite enough to live on...but if that's all you have, then change your living standards....

You'll probably still struggle. And when you do the vultures will be there waiting and you'll still be blaming yourself.

When the system puts up barriers to prosperity and participation, personal responsibility is not sufficient to overcome disadvantage - and it is no surprise that some will fall to the bottom and remain there...

When we see clusters of counter-productive trends repeated in different places, it is no longer good enough to blame individuals for failing to take personal responsibility - it's time to look for underlying systemic causes...

Annie Anthrax wrote on Oct 31^st, 2011 at 12:46pm:

gizmo_2655 wrote on Oct 31st, 2011 at 12:42pm: Annie Anthrax wrote on Oct 31st, 2011 at 12:41pm: Quote: It's like any thing else...drink driving is a good example... No it's not. I would think that people who overdraw do so for necessities like food, medicine and bills. They are then slogged with a punishment - a punishment for not having enough money. It's not right. Granted...the newstart payment isn't quite enough to live on...but if that's all you have, then change your living standards.... You'll probably still struggle. And when you do the vultures will be there waiting and you'll still be blaming yourself.

Oh they are circling....But I'm dealing with it...

Good luck. Sincerely.

Annie Anthrax wrote on Oct 31^st, 2011 at 1:01pm:

Good luck. Sincerely.

Thank you annie...

Equitist wrote on Oct 31^st, 2011 at 12:51pm:

When the system puts up barriers to prosperity and participation, personal responsibility is not sufficient to overcome disadvantage - and it is no surprise that some will fall to the bottom and remain there... When we see clusters of counter-productive trends repeated in different places, it is no longer good enough to blame individuals for failing to take personal responsibility - it's time to look for underlying systemic causes...

Fair enough...but, still, I 'can', if I choose, live within a budget, on the amount I'm receiving...It's not fun, but it's possible...

gizmo_2655 wrote on Oct 31^st, 2011 at 1:28pm:

Equitist wrote on Oct 31st, 2011 at 12:51pm: When the system puts up barriers to prosperity and participation, personal responsibility is not sufficient to overcome disadvantage - and it is no surprise that some will fall to the bottom and remain there... When we see clusters of counter-productive trends repeated in different places, it is no longer good enough to blame individuals for failing to take personal responsibility - it's time to look for underlying systemic causes... Fair enough...but, still, I 'can', if I choose, live within a budget, on the amount I'm receiving...It's not fun, but it's possible...

I'm with Annie: your stoicism is truly admirable!

;-)

Do you have children?

Annie Anthrax wrote on Oct 31^st, 2011 at 1:34pm:

Do you have children?

Me?? No, not at least that I'm finacially responsible for, anyway...

Just me, the cat, and my habits..

Making ends meet with children would be much harder. For families with kids, wouldn't the money taken in extreme interest and fees be better spent on school supplies?

Annie Anthrax wrote on Oct 31^st, 2011 at 1:38pm:

Making ends meet with children would be much harder. For families with kids, wouldn't the money taken in extreme interest and fees be better spent on school supplies?

True, but with kids the amount is higher...

gizmo_2655 wrote on Oct 31^st, 2011 at 12:13pm:

Sir lastnail wrote on Oct 31st, 2011 at 12:12pm: gizmo_2655 wrote on Oct 31st, 2011 at 11:19am: Sir lastnail wrote on Oct 31st, 2011 at 11:13am: gizmo_2655 wrote on Oct 31st, 2011 at 10:55am: Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)... what is the proof then ?? Have you ever applied for a loan, either short or long term, nails?? The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income.... Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00) Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them.... And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !! Quite possibly...Some people DO make those statements....either through ignorance or intent...It happens....

And cashconverters still obliged him with the loans even though he was on a disability pension !!

Like I said cash converters makes Shylock look like a nice guy !!

Sir lastnail wrote on Oct 31^st, 2011 at 3:05pm:

gizmo_2655 wrote on Oct 31st, 2011 at 12:13pm: Sir lastnail wrote on Oct 31st, 2011 at 12:12pm: gizmo_2655 wrote on Oct 31st, 2011 at 11:19am: Sir lastnail wrote on Oct 31st, 2011 at 11:13am: gizmo_2655 wrote on Oct 31st, 2011 at 10:55am: Well, in order to get those loans, he must have been able to prove that he could afford to repay them.... If he said that he could, when he actually couldn't, how is it Cash Converters fault???   ( other than not realising he hadn't repayed the last one)... what is the proof then ?? Have you ever applied for a loan, either short or long term, nails?? The first question they ask is "can you afford the repayments?"......the standard is that the repayments cannot be more than 1/3 of your income.... Even the Centrelink advances use that formula......and the rate is $75.00 per month on a $500 amount, repaid over 9 months (which means you repay $675.00) Granted, the company shouldn't have allowed so many......if the situation is THAT bad, he must have defaulted on at least some of the earlier ones, or had trouble repaying them.... And that guy would have said "sure I can afford the repayments. Being on a disability support pension means that I can have a holiday each week" !! Quite possibly...Some people DO make those statements....either through ignorance or intent...It happens.... And cashconverters still obliged him with the loans even though he was on a disability pension !! Like I said cash converters makes Shylock look like a nice guy !!

In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones...
So YES, Cash Converters DID do the wrong thing.....

If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans???

Sir lastnail wrote on Oct 31^st, 2011 at 10:41am:

Cash Converters makes Shylock look like a nice guy ;) Can you believe that Cash Converters is a publicly listed company on the Australian Stock Exchange !! Just remember that the next time you walk into a Cash Converters store and see a second hand drill 3 times the price of what you can buy a new one in Bunnings :D LOL Quote: Cash Converters International (CCV) is a franchised retail network listed on the ASX and London Stock Exchange. It specialises in the sale of second-hand goods. The Cash Converters group employs modern retailing practices, professional management techniques and high ethical standards to the management of its stores throughout the chain which appeal to a wide cross section of the community. As a result, Cash Converters has been able to position its outlets as credible retail merchandise stores, resulting in a profitable market for the group. The range of services offered by Cash Converters stores around the world varies with pawn-broking loans available in selected markets, as well as a personal finance business that operates, in various forms in the micro-lending category around the world.

yes, if you deal with any pawn shop, you have lost big time.

gizmo_2655 wrote on Oct 31^st, 2011 at 4:46pm:

In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones... So YES, Cash Converters DID do the wrong thing..... If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans???

if he has collateral such as a home or car they will lend him money for sure even if they know he can't possibly pay it back. Then they will get it back plus interest by getting control of his home and selling it on him and before long he will be out on the street after they have stolen what they need :(

That's how those scumbags work :(

Sir lastnail wrote on Oct 31^st, 2011 at 5:40pm:

gizmo_2655 wrote on Oct 31st, 2011 at 4:46pm: In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones... So YES, Cash Converters DID do the wrong thing..... If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans??? if he has collateral such as a home or car they will lend him money for sure even if they know he can't possibly pay it back. Then they will get it back plus interest by getting control of his home and selling it on him and before long he will be out on the street after they have stolen what they need :( That's how those scumbags work :(

Sorry nails...If the guy lie to the loaner, then it's really HIS problem...
If I (e.g) tell a loan company that I 'can' repay the loan..(even if I can't) who is in the wrong, me or the loaner???

Lying to the company that's giving me the cash really does mean it's MY fault, not their's.....

It still works under the idea of personal responsibility...

If I say that I CAN repay $100 per fortnight, but actually can only repay $20 per fortnight....who is wrong???

I dips me lid Gizmo http://th4.photobucket.com/albums/y134/Sprngpilot/Smileys/th_vk_smiley_thumbs_up.gif

Annie Anthrax wrote on Oct 31^st, 2011 at 10:47am:

Quote: Critics say that a typical payday loan has an annualised interest rate of more than 400 per cent.   That's criminal.

Especially in Queensland.

Annie Anthrax wrote on Oct 31^st, 2011 at 11:02am:

It is Cash Converters fault that they charge such exorbitant interest to desperate people.

AA there are several issues here; firstly I'm of the opinion that this type of lending should be banned.

The price reflects the risk; let's face it the odds of losses are pretty short.

The fact this type of lending exists underscores wider spread problems, not least of which is a complete lack of financial nous amongst the general population perpetuated by an education system that fails to address financial education in any fashion.

Sir lastnail wrote on Oct 31^st, 2011 at 5:40pm:

gizmo_2655 wrote on Oct 31st, 2011 at 4:46pm: In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones... So YES, Cash Converters DID do the wrong thing..... If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans??? if he has collateral such as a home or car they will lend him money for sure even if they know he can't possibly pay it back. Then they will get it back plus interest by getting control of his home and selling it on him and before long he will be out on the street after they have stolen what they need :( That's how those scumbags work :(

In reality. if he'd had collataral, like a house or car...he would have scored the usual rate of 6.75% or 8.50%....
Unsecured loans are always at a higher rate of interest than secured loans...

gizmo_2655 wrote on Oct 31^st, 2011 at 5:55pm:

Sir lastnail wrote on Oct 31st, 2011 at 5:40pm: gizmo_2655 wrote on Oct 31st, 2011 at 4:46pm: In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones... So YES, Cash Converters DID do the wrong thing..... If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans??? if he has collateral such as a home or car they will lend him money for sure even if they know he can't possibly pay it back. Then they will get it back plus interest by getting control of his home and selling it on him and before long he will be out on the street after they have stolen what they need :( That's how those scumbags work :( Sorry nails...If the guy lie to the loaner, then it's really HIS problem... If I (e.g) tell a loan company that I 'can' repay the loan..(even if I can't) who is in the wrong, me or the loaner??? Lying to the company that's giving me the cash really does mean it's MY fault, not their's..... It still works under the idea of personal responsibility...

where is the proof that he lied ??

gizmo_2655 wrote on Oct 31^st, 2011 at 8:53pm:

Sir lastnail wrote on Oct 31st, 2011 at 5:40pm: gizmo_2655 wrote on Oct 31st, 2011 at 4:46pm: In truth, NO, that was a problem....Any 'honest' loan company should not have given him that many loans.....especailly if he'd failed to repay the first few loans....You need to understand that if he'd failed to repay the first 5 or 10 loans, why would they have allowed the next few ones... So YES, Cash Converters DID do the wrong thing..... If anyone had a problem with repaying the first 15 or 20 loans why would you give the NEXT 10 or 20 loans??? if he has collateral such as a home or car they will lend him money for sure even if they know he can't possibly pay it back. Then they will get it back plus interest by getting control of his home and selling it on him and before long he will be out on the street after they have stolen what they need :( That's how those scumbags work :( In reality. if he'd had collataral, like a house or car...he would have scored the usual rate of 6.75% or 8.50%.... Unsecured loans are always at a higher rate of interest than secured loans...

so cash converters would have given him a better deal if he owned his own home :D LOL

Nowadays, we really need to think for some alternative solutions whenever there is an unexpected expenses.

Cash Converters and Pay Day lenders are the modern pariahs that afflict the most vulnerable in our society, people who are doing it tough for whatever reason.

The Govt. should legislate hard against these Loan Sharks and drive them out of business.

Reasonable provision should be made through Centrelink to deal with the resultant problem. I am not talking handouts but a short term loan at reasonable rates would be a way out.

Banks only want to lend to people who have craploads of collateral.

wrote on Oct 31^st, 2011 at 10:22am:

A MAN who claims he was trapped in a debt nightmare after being recklessly granted dozens of payday loans has launched a legal challenge against Cash Converters.   :-? Disability support pensioner Ronald Hayes claims he was forced to rely on food handouts after he was given at least 64 payday loans in three years.   :(

Cash Converters practice is ABHORRANT

But REALLY ...

"at least 64 payday loans in three years" ?

Were there no WARNING BELLS regarding the rate of interest ?


I KNOW the STUPID need to be protected - but how far do you need to go ?