BY CHRIS PIPPOS
12/09/2008 9:39:00 AM
THOUSANDS of Tasmanians are desperate for instant loans to pay household bills, as more payday lenders – often called loan sharks – tap into the less regulated local market to offer horrendous interest rates.
At one finance company alone, which has two North-West outlets, 2500 customers a year get quick cash approved to simply pay bills.
Welfare groups are demanding the State Government act now to cap the interest rates and charges offered by payday lenders, in line with other states.
Rodney Purves, the state manager of Personal Finance Co, which has two of its six Tasmanian outlets in the North- West, and is not a payday lender, said a third of his annual customers – or 2500 – needed fast cash of up to $3000 (at 29 per cent interest) to pay household bills.
“We are unable to help all applicants due to matters of affordability and credit reporting,” Mr Purves said.
But Mr Purves said there had been an increase in mainland credit providers in Tasmania.
Payday lenders don’t do credit checks, and offer small loans with massive interest rates to be repaid within weeks not months.
“Mainland interests come here because there’s no capped rate,” Mr Purves said.
The Advocate yesterday contacted two Queensland lenders who offer loans locally, but they did not comment.
Tasmanian Council of Social Service chief executive officer, Tom Muller, echoing sentiments expressed by Anglicare, said the government must act.
