Stop the short-term loan ads

If you’re in social isolation it’s potentially why you found any time to read this, and you may be watching more TV.

Have you noticed the increased number of short-term loans advertised? The loan companies promising to ‘help Australians out’ with a short-term loan that will ‘tide us over’ while we’re ‘a bit short’. Their offers of help disguise the product design – a debt trap netting millions in profit for lenders.

It’s only now with COVID-19, that I’ve considered how these predatory advertisements could damage our economy further.

These ads are not ok.
They are not a hand up, but a spiral down.

I follow the Barefoot Investor, and recently, Scott reminded me we can do something about ‘Payday Lending’. Yep, and it’s easy.

It will be 3-weeks or more before many business owners and unemployed will receive any type of government support. People are stressed. Payday lenders are smelling the desperation rise and they’re ready to cash in. While the share market dives, their share prices creep up, and evil investors divert their dollars to prey on the average Australian’s despair.

 

Gains posted today 24.3.20

 

Look, I know the word ‘evil’ is strong and that a lot of Aussies seem to think we just need to ‘look after our own’ right now. But actually, that’s exactly part of the downward spiral I want us to help prevent in this country. And we can. It’s only going to take you a second or two to help.

These payday loans are designed to lock people into a debt spiral. Our people. Australians. The people we are told to look out for right now. And, often single mothers.

A debt spiral is the last thing Australians need right now. The government has conducted ‘reviews’ into these schemes, and from what I can see nothing has happened. Now is the time when it should.

The Ads Standards board doesn’t do much about these matters. ‘The Panel does not consider whether a product or service is, or should not be, legally allowed to be advertised. ‘ So who does decide if it’s a-ok?

The man who is supposed to be fighting these predators is Assistant Treasurer Michael Sukkar. Oh but, he shelved the fight last year after significant lobbying from the industry.

Now’s the time we can remind him he’s there to have our backs, not the lending companies.

If you’re ‘social distancing’ and have extra time on your hands, please send him an email.

Tell him to stop the short-term loan ads.

michael.sukkar.mp@aph.gov.au

Update: I’ve had word his emails are bouncing back. You can also contact him here.

#paydaymayday