Digital Finance Analytics (DFA) Blog
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From TheBankDoctor. In 2015, online SME lending in Australia was around $250m, up from a zero base two years ago. Growth will continue exponentially and online SME lending will become a significant alternative source of funding for Australia’s SMEs. Online lenders perform an important role by lending to thousands of SMEs that would otherwise struggle … Continue reading “SMEs need protection from online Payday Lenders”
From Search Engine Land. After a week’s delay, the ban on predatory lending ads for AdWords advertisers is beginning to roll out. In May, Google announced that ads promoting payday loans that require repayment within 60 days and loans with interest rates above 35 percent would no longer be accepted or displayed starting July 13. Yet many … Continue reading “Google’s ban on payday & high-interest loan ads going into effect”
From The US Conversation. One of the few lending options available to the poor may soon evaporate if a new rule proposed June 2 goes into effect. The Consumer Financial Protection Bureau (CFPB) announced the rule with the aim of eliminating what it called “debt traps” caused by the US$38.5 billion payday loan market. But … Continue reading “Limiting access to payday loans may do more harm than good”
Google said that from mid-July, it would no longer accept ads for loans where repayment is due within 60 days of the date of the issue, imposing a blanket ban across its ad systems to shield users from “deceptive or harmful” financial products. It will include ads for loans with an annual percentage rate of … Continue reading “Google Bans PayDay Ads”
From The Conversation. The payday lending sector is under scrutiny again after the Australian Securities and Investment Commission’s investigation into Nimble. After failing to meet responsible lending obligations, Nimble must refund more than 7,000 customers, at a cost of more than A$1.5 million. Aside from the refunds, Nimble must also pay A$50,000 to Financial Counselling … Continue reading “Four reasons payday lending will still flourish despite Nimble’s $1.5m penalty”
Following a significant ASIC investigation, payday lender Nimble Australia Pty Ltd (Nimble) will refund over 7,000 customers more than $1.5 million after ASIC had concerns that Nimble was failing to meet its responsible lending obligations. ASIC identified significant deficiencies in Nimble’s compliance with the responsible lending laws when providing loans of short duration to consumers. … Continue reading “Payday lender Nimble to refund $1.5 million following ASIC probe”
Following ASIC intervention, Fair Go Finance Pty Ltd has paid $34,000 in infringement notices for overcharging interest and establishment fees on payday loans. Fair Go Finance will also refund approximately 550 consumers around $34,500 for the interest and fees it collected from consumers in excess of the maximum amount allowed under the National Consumer Credit … Continue reading “Payday lender penalised for overcharging consumers”
New DFA research shows that women who are most vulnerable and under the most significant financial pressure are most likely to access payday services. Those that do are quite likely to take multiple loans. DFA, in conjunction with Monash University published a report on households in financial stress last year using data from our household … Continue reading “Women are increasingly using payday loans, at growth rates above system”
ASIC has today put forward a submission to the Independent Review of the Small Amount Credit laws. ASIC’s submission to the review notes that the current rules that apply to small amount loans, also known as payday loans, are a significant improvement over the previous State-based regimes. However, ASIC has identified a number of potential … Continue reading “ASIC helps inform payday lending review”
From MoneySavingExpert. Sheffield City Council has recently supported the setup of Sheffield Money, a not-for-profit organisation tackling unfair access to finance. Sally Preece, a support and advice worker for Sheffield Money, explains what’s happening and why. An emerging trend in the UK today is that an increasing number of people need help with their finances, … Continue reading “How Sheffield City Council is supporting payday loan alternatives”