Lenders eye pay day through automatic loan machines

In a multimillion-dollar windfall for pay-day lenders, automatic loan machines are popping up in suburban shopping centres, allowing some of Australia’s most disadvantaged communities to take out loans worth thousands of dollars with their bank cards.

Many short-term credit contracts can have an annual interest rate of 60 per cent, compared with up to 25 per cent for credit card cash advance. CashNgo charges a 20 per cent fee and 4 per cent monthly interest.

via Lenders eye pay day through automatic loan machines

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