CFFC welcomes government crackdown on loan sharks
The Commission for Financial Capability (CFFC) welcomes government moves to crack down on loan sharks announced today.
“Our community partners work with families every day who are in crippling cycles of debt as a result of the predatory actions of loan sharks and unscrupulous truck shop operators,” says the Head of the CFFC’s Community Programmes, Peter Cordtz. “The measures announced by the Prime Minister and Minister of Commerce and Consumer Affairs will go a long way to restricting the impact of these opportunists on vulnerable families.”
The CFFC runs Sorted financial capability courses in communities and workplaces, often in partnership with other government agencies that help low-income families.
Cordtz said families targeted by third tier lenders were those who could least afford to take on high-interest debt, were less likely to be aware of their rights and were often “so consumed by the urgency of now, they feel they have no alternatives”.
“High interest debt traps them in
poverty and hinders not only their own future but that of
their children. The government’s action will act as a
circuit breaker to help families climb out of debt, as will
continuing education about their rights and how to move
forward,” said Cordtz.