Ombudsman asked to consider lending practices of payday loan provider
Consumer Action is lodging another dispute against a high profile payday loan provider. The most recent dispute, being lodged on behalf of Ms Jane Bowyer with the Credit Ombudsman Service, alleges The Cash Store engaged in irresponsible lending practices, and asks whether it lent Ms Bowyer money she could not afford to repay.
When she got the loan in November 2011, Ms Bowyer was only receiving $671 from the Disability Support Pension, an amount that just covered her rent, utilities and other living expenses. Yet The Cash Store provided an amount of credit of approximately $300, which required her to repay $476.62 in the space of a fortnight. Repaying such a loan in full would have left Ms Bowyer with income of just $194.38 for two weeks, reducing her pension by around 71 per cent. Read the full media release here.