How you are protected |
Consumer credit is now regulated by the Australian Government. The National Consumer Credit Code gives consumers certain protections when they enter into regulated credit contracts, such as loans or credit for personal, household and domestic purposes. For more information, visit the ASIC consumer website.
There is a 48 per cent interest rate cap on loans to protect consumers getting new loans. The interest rate cap is regulated by the Office of Fair Trading. See payday lending.
However, the cap may not apply to alternative loan products or loan-like products, including pawnbroker transactions.
We encourage all consumers considering a loan to investigate the arrangement carefully. Compare products that other lenders offer to ensure you won´t be paying excessive fees and charges.
Pawnbroker transactions
There is no limit on the amount of fees and interest that pawnbrokers can charge for their loan-type arrangements. However, you may apply to a court to make orders about these loans if you think the transaction was unjust or the interest or fees charged are unconscionable.
There are no enforceable hardship provisions to protect consumers from pawnbrokers' charges like those provided in the National Consumer Credit Code.
Last reviewed 11/04/2013 |
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