CONSUMER groups and industry associations have formed met for the first time to discuss mounting concerns about predatory lending.
The coalition, which includes the Australian Bankers’ Association, Abacus, Mortgage and Finance Association of Australia, consumer groups, Legal Aid, law firms and the Public Interest Law Clearing House – have formed a coalition following concerns about fringe credit practices.
Predatory lending involves the deliberate targeting of borrowers who do not have the ability to pay but have equity in their homes.
Consumer Credit Legal Centre (
“Measures that respond to predatory lending practices are needed as a matter of urgency,” she added.
The new coalition is working on practical options to address predatory lending and will be seeking to engage with State, Territory and Federal Governments on targeted reforms to deal with aggressive and predatory lending practices.
The Predatory Lending Project is being co-ordinated by the Public Interest Law Clearing House (NSW), Legal Aid NSW and Consumer Credit Legal Centre (NSW).
The forum spoke in favour of targeted reforms and responsible lenders are committed to setting the standard for the market.
Already, Wizard Home Loans founder Mark Bouris welcomed the industry coalition.
“As a lender that has been a leading consumer advocate over the past 11 years, Wizard supports this initiative and would welcome the opportunity to represent the non–bank lending industry in this coalition.
“This type of predatory lending is confined to a few rogue lenders and brokers and it’s unfair that the whole sector is tarnished because of the reckless actions of these players.
“It is incumbent on all lenders, irrespective of whether they are a bank, credit union, building society, or non-bank lender, to maintain rigorous lending practices and display only prudent lending behaviour,” he concluded.
Australian Property Journal
