Small Amount Credit Contracts: Briefing Report Kate Davies Julia Cook - NOVA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Small Amount
Credit Contracts:
Briefing Report
Kate Davies
Julia Cook
ISBN: 978-0-7259-0402-9
Small Amount Credit Contracts: Briefing Report
3
Small Amount Credit Contracts: Dr Kate Davies is a Human Services Lecturer
Briefing Report at the University of Newcastle. Her research seeks
to better understand health and wellbeing
This research was funded by the Faculty of inequalities, with a focus on participation and
Education and Arts, University of Newcastle in the citizenship. Kate’s recent research explores the
Research Programs Pilot Scheme. value of people with lived experience of mental
Davies, K. and Cook, J (2021) Small Amount Credit illness and disability in leading, informing and
Contracts: Briefing Report. Report prepared by the implementing social policy and practice. She is part
Newcastle Youth Studies Network, University of of a multi-disciplinary research and practice team
Newcastle, Australia. looking at the inclusion of families in child protection
processes and is also contributing to research on
Published: 13/05/21 young people’s experiences of debt and credit. Kate
ISBN: 978-0-7259-0402-9 works with collaborative qualitative research methods
that draw together policy, practice and lived experience.
Dr Julia Cook is Lecturer in Sociology at the
University of Newcastle, Australia. Her research
interests include the sociology of youth, time and
housing, and the intersections of each of these topics
and economic sociology. Her most recent research
addresses young adults’ pathways into home
ownership; regional, rural and remote tertiary
students’ experiences of housing after relocating to
pursue their studies; and young adults’ navigation
of debt and financial assistance, with a particular
focus on small amount credit contracts and buy now
pay later financial products. She is co-director of the
Newcastle Youth Studies Network and a chief
investigator on the current phase of the long-running
Life Patterns research program (2021-2025).Small Amount Credit Contracts: Briefing Report
4
About Us
The Newcastle Youth Studies Network is an international network of research collaboration in the sociology of youth,
led by researchers at the University of Newcastle, Australia. The network consolidates the University of Newcastle’s
concentration of research excellence in the sociology of youth and facilitates collaborative relationships between
international network members. The network is focused on creating new horizons in youth research driven by five key
concerns:
Young People and the New Economy
Youth Gender and the Body
Youth, Class and Culture
Youth, Intergenerational Dynamics and the Future
Young People in the Global South
The network also includes a wide range of methodological expertise in both quantitative and qualitative methods,
including: large surveys, interviews, focus groups, visual methods, photovoice, ethnography, figurative methodology
and discourse analysis.
The network is co-directed by Dr David Farrugia, Dr Julia Coffey, Dr Steven Threadgold and Dr Julia Cook.
Information about members and current projects can be found on this website. Follow the Newcastle Youth Studies
Network on Twitter @studies_youth and Facebook.Small Amount Credit Contracts: Briefing Report
5
Contents
Acknowledgements 6
What are Small Amount Credit Contracts? 7
How are they regulated? 7
Who uses SACCs? 8
Why do people use SACCs? 9
What do SACCs borrowers think about lenders? 9
How does the loan industry see and present itself? 10
What challenges do regulators face? 11
What are the alternatives? 12
Key areas for further consideration 12-13
Conclusion 14
References 15-17Small Amount Credit Contracts: Briefing Report
6
Acknowledgements
The authors would like to thank Mitchell Taylor for
his invaluable research assistance with this project,
and the other members of the ‘Regional youth in
precarious times’ research program for their scholarly
support. The other members of the program include
David Farrugia, Kate Senior, Steven Threadgold, Julia
Coffey, Helen Cahill, Barrie Shannon and Adriana
Haro. The authors would also like to acknowledge
David Savage who was part of the program team
and sadly passed away in early 2021. David’s death
represents a significant loss to this project and to the
wider university community.Small Amount Credit Contracts: Briefing Report
7
What are Small Amount Credit Contracts? How are they regulated?
Small Amount Credit Contracts (SACCs) are In Australia SACCs are regulated under the National
unsecured loans up to $2,000. The term of a SACC is Consumer Credit Protection Act 2009 (NCCP
a minimum of 16 days and a maximum of 12 months, Act). The NCCP Act sets out measures to protect
and they are often referred to as ‘payday loans’. consumers including:
They are provided by lending organisations who are
a) Licencing requirements for credit providers;
not authorised deposit-taking institutions. Many of
these SACC providers are members of the industry b) Obligations for credit licensee to determine whether
peak body National Credit Providers Association.1,2,3 or not a credit contract is suitable for the borrower;
The number and value of SACCs issued in Australia
c) Requirements for licensees to have internal
has increased in recent years. More than 4.7 million
dispute resolution processes in place and to be
individual loans were taken on by about 1.77 million
members of an ASIC-approved external dispute
households in Australia between April 2016 and July
resolution scheme.5
2019, totalling approximately $3.09 billion.4
In 2011 a contentious amendment to the NCCP
SACCs have traditionally been offered by lending
was introduced into Parliament, proposing tighter
organisations in face-to-face shopfronts. However,
regulation of SACCs. It was supported by various
SACCs are being increasingly offered online via
legal advocates and consumer protection groups
websites and smartphone applications. Some of the
and opposed by the credit provider industry,
longer-established lending organisations continue
particularly via the lobby group the National Financial
to work from physical locations, while also providing
Services Federation.2 A revised version of the bill,
online application methods. Many of the emerging
Consumer Credit Legislation Amendment Act 2012
SACCs lenders are online only.
(‘Enhancements Act’) was passed in Parliament in
August 2012. A focus of the Enhancements Act was to
address risks of SACC consumers “falling into a debt
spiral through repeated or continued use of high-cost
small amount credit contracts”.5 It set a cap on fees
and charges associated with SACCs, banned short-
term credit contracts of $2,000 or less with terms of
15 days or less, set a presumption of unsuitability for
any consumer in default under another small loan or if
the consumer had taken out two or more other SACCs
in the last 90 days, and required lenders to display a
warning showing alternatives to a SACC.
A review of SACC laws was conducted by the
Federal Government between August 2015 and April
2016. Recommendations from this review included
removing the presumptions of unsuitability to simplify
the requirements, capping SACC repayments at 10
percent of net income (instead of 20 percent of
gross income) and preventing SACC providers from
making unsolicited offers for further SACCs to current
or previous customers (a practice that is common
when a customer’s existing SACC is reaching the end
of its term).6
The Australian Government accepted many of these
recommendations and subsequently put out draft
legislation in October 2018. This legislation hasn’t
progressed since then, although the Government has
promised stronger legislation of SACCs.7,8,9Small Amount Credit Contracts: Briefing Report
8
Who uses SACCs?
The reasons for using SACCs and the characteristics However, there may also be some truth in the picture
of people who use them are described differently by painted by the lending industry. As online SACC
various stakeholder groups. SACC lenders tend to products have become more common there has been
describe SACCs as a form of emergency finance for a a segmentation of borrowers. People who access
growing ‘middle class’ group of borrowers. Consumer SACCs online are more likely to be higher income
advocates, however, argue that people who are earners than their counterparts who access SACCs
experiencing vulnerability and poverty tend to use face-to-face, resulting in a recent bifurcation of the
SACCs to cover everyday living expenses.2 consumer base.1
Of course, a wide range of people access SACCs for Men and women are equally likely to access SACCs,
diverse reasons. There is evidence though that people although recent evidence suggests that the proportion
who use SACCs tend to report a range of socio- of women may have increased slightly.10,11 The
economic hardships. Across various studies SACC average SACCs borrower is in their late twenties
borrowers have reported being disproportionately to early thirties10,11,14, though this average age may
likely to: have risen to as high as 41 in recent times.13 There
do not seem to be any particular ethnic communities
• Earn low levels of income;10,11
disproportionately represented in the evidence on
• Have low levels of education;10,12 SACCs users.10,11,12
• Live in socially disadvantaged areas;10
• Having low rates of home ownership;12
• Be sole parents;10,11
• Be unemployed;10,12
• Be recipients of social security payments;10,12
• Experience a range of health concerns;12 and
• Have concerns related to gambling, alcohol
consumption and drug taking.10,12Small Amount Credit Contracts: Briefing Report
9
Why do people use SACCs?
Evidence suggests that people tend to access cash Many SACC borrowers are repeat customers and
loans via SACCs because other forms of credit are some worry that the loans are too easy and fast to
inaccessible for them,11,13 not because they don’t access, locking them into a cycle of debt.12 There are
understand the costs or consequences of SACC reports of SACC borrowers taking out an average
loans. Few SACC borrowers have taken out, or even of six loans over a one year period,10 people having
attempted to access, bank loans or credit cards.12 accessed as many as 20 SACCs, with rates of repeat
Research shows that SACCs borrowers tend to borrowing being particularly high among recipients of
avoid banks. They know that their low income or the Disability Support Pension.12
bad credit rating means they are unlikely to be
All of this suggests that SACCs are not just about
approved for a bank loan and perceive that banks
meeting short-term, emergency financial shortfalls,
are “not for people like me” because of their high
but reflect entrenched inequalities, poverty and social
minimum loan amounts.12 There are also reports that
exclusion.
SACCs borrowers fear bank debt, are wary of banks’
irresponsible practices and dislike banks because of What do SACCs borrowers think about
negative personal experiences.10,12 lenders?
SACC borrowers have also reported a reluctance The evidence on SACC borrowers’ perceptions of
to access credit cards because they worry about these loans shows the diversity among this group of
the temptation of open-ended credit, and because people. SACCs offer some people a sense of privacy
they think they would be ineligible to be approved and self-esteem in being able to deal independently
for one anyway.10,12 For some people, SACCs are with financial worries.10 Face-to-face experiences with
the only form of credit available to them because SACC lenders were positive for some people, who
they have declared bankruptcy in the past or they felt that they got a more personalised and respectful
have other forms of bad credit ratings.10,12 For other service than they would at a bank, with short waiting
people, SACCs are considered preferable to loans times and friendly service.10,12 For particular cultural
from family and friends, which they worry would communities, such as Pacific Islander communities,
lead to dependence, a lack of privacy and problems short-term loans are a common practice, particularly
with personal relationships. Some people think that given the need to contribute money to events such as
a SACC is better than a pawnbroker which has a weddings, birthdays and funerals. The money lender
stigma of desperation and poverty, or welfare support is seen as part of the community in this case.12
which can also feel stigmatising and be slow and
administratively burdensome.10,12 In contrast, for some people SACCs are associated
with a sense of shame, guilt and failure and borrowers
Research shows that many SACC borrowers are feel that lenders prey on their misfortune.11 Some
trying to meet the costs of day-to-day living and SACC borrowers report that they are unhappy about
household expenses.10,11,12,13 Many of these people are the high costs of these loans, but take them anyway
low-income earners experiencing financial stress.10 because they have no other choice.10,12 Others feel
SACC borrowers tend to take out loans in order to pay that the conditions and costs of the loans were not
bills, buy food or pay rent.10,11 These loans may also fully explained to them.12,13 Borrowers were often
be used to cover expenses such as clothing, medical frustrated about direct debit repayments and transfer
bills, healthcare, school trips and various items for issues between the bank, the lender and sometimes
children.13 Car repairs and registration are other Centrelink, which could lead to extra fees and
common reasons for taking out a SACC.11 charges.12 Despite this, the evidence shows that
SACC borrowers are generally grateful for these
high-cost and short-term loans and view them as an
important part of managing their finances.11Small Amount Credit Contracts: Briefing Report
10
How does the loan industry see and
present itself?
SACC lenders tend to perceive (or at least promote) “Our online application is quick and simple, and we
their industry as one that is about helping and use a clever credit engine to get you a decision fast. If
supporting people and improving quality of life. They approved, you could have your cash available in your
recognise the concerns that potential borrowers bank account within an hour!”17
have about credit and financial institutions. They
“Beautifully simple online application”19
seek to address these concerns by offering friendly,
accessible and professional-looking services There are differences between the ways that
(whether face-to-face or online).12 Some lenders SACC lenders engage with customers online
view themselves as caring and worried about the and face-to-face. Algorithms tend to be used for
wellbeing of their customers; indeed, there are some determining eligibility for a SACC loan online and
rare reports of lenders referring people to welfare these services are generally more risk-averse,
organisations.12 Lenders tend to highlight easy access favouring borrowers with a stable salaried income.
to loans as a positive, but have been criticised Online marketing of SACCs is often geared towards
for taking advantage of customers’ vulnerabilities people seeking loans to enhance lifestyle, such as
by offering incentives for first time borrowers and holidays and there is potential for online lenders to
encouraging repeat borrowing.10 minimise visibility of warnings and present engaging
imagery to their potential customer base.21 Face-to-
The loan industry generally argues that short term
face services tend to exercise more discretion in their
loans are there to meet unexpected expenses and
judgements of eligibility and may be more appealing to
to be a “convenient and economical solution to meet
borrowers with low incomes who are seeking smaller
temporary cash flow problems”.15 Lenders themselves
loans.1 Those SACC lenders who offer shopfront
promote a variety of purposes. Examples of reasons
services in addition to online loan access promote
to access SACCs, from a sample of lenders’ websites,
their face-to-face service as being friendly and
include funeral costs, veterinarian bills, consolidation
informative. “If you need to chat or find out more
of multiple loans,16 holidays, new car, emergency
come in store”.20 Some SACCs lenders suggest a
cash,17 motorcycles, jet skis, Christmas, weddings,
‘non-discriminatory’ approach to lending and highlight
birthdays, student costs, equipment, rental bonds,18
that loans are available for people who are unemployed,
car repairs, medical emergencies, emergency cash,
self-employed or in receipt of Centrelink payments.16
bad credit, and to pay bills.19 SACCs are promoted as
a means to deal with the ‘unexpected’ - “We know that The small loan industry has been a vocal lobby group,
life doesn’t always go to plan and that the unexpected particularly in response to proposed tightening of
happens”20 and for improving quality of life more regulations. NCPA appeals to borrowers to “stop
generally - “So apply now and get on with enjoying politicians restricting your access to small loans and
life”.17 credit”22, while Cash Converters ran an online and
mail campaign where they photographed customers
SACC lenders’ descriptions of their services tend
holding “No Cap” signs to lobby politicians against the
not to explicitly compare them to banks’ services,
2012 Enhancements Act.2
but they do distinguish their products from larger
finance institutions in a variety of ways. They promote
their products as being ‘hassle free’, quick, flexible
in terms of repayment schedules and with minimal
administrative requirements.Small Amount Credit Contracts: Briefing Report
11
What challenges do regulators face?
While increased regulation may seem to offer a
solution to some of the issues posed by SACCs, there
are several challenges to further regulation.
Challenge 1: Industry viability Challenge 3: Compliance and enforcement
SACCs currently play an important role in financial The complexity of the current regulations present
management for vulnerable and financially challenges for compliance and enforcement. If
disadvantaged groups of people. For this reason, regulations are difficult to understand and implement 2
legislation of SACCs lending must (in the absence it may encourage lenders to avoid them, and increase
of alternatives) strike a delicate balance between the need for, and cost of, enforcement. Litigation is
consumer protection and industry viability. Excessive expensive and borrowers are unlikely to commence
regulation has the potential to make lending difficult private litigation against lenders given the relatively
or unworkable.2,5 Regulation also has the potential to small amount of the loan. The responsibility for
change the composition of SACC lending businesses. enforcement thus falls heavily on ASIC.
It might lead them to expand into medium amount
ASIC’s 2015 report into regulatory compliance reveals
loans and other credit products (such as purchasing
a number of ways that the SACC lending industry can
secured debts), and to focus more on unregulated
circumvent existing regulations or structure loans in
services such as pawn broking or gold buying.5
ways that take advantage of borrowers. For example,
Challenge 2: Regulatory burden lenders may continue to lend to consumers who
trigger presumptions of unsuitability.5 The current
Regulatory compliance can also create administrative
regulation also leaves ambiguities that lenders can
costs and make SACCs more expensive to those
exploit. For example, lenders are required to assess a
borrowers who depend on them. Some have argued
consumer’s requirements and objectives before they
that this is currently the case in Australia. Rules
enter into a loan, and must ensure that a SACC meets
brought into law by the Enhancements Act required
these objectives. ASIC’s regulatory guides further
lenders to understand and apply complex definitions,
explain that lenders must find out “sufficient details
and make in-depth inquiries for loans that are typically
about why the particular consumer requires credit”
for amounts between $100 and $300.2,6 This slower
and must determine when a credit contract will meet
and more expensive approval process results in
that purpose.5,23 A review of regulatory compliance
higher administrative costs for lenders, and these
found, however, that many providers “inappropriately
costs are likely to be passed on to borrowers.
use high-level statements, such as ‘personal’ or
Some lenders have identified that because of ‘temporary cash shortfall’, to describe the purpose
regulation they have increased the typical amount of of the loan,” or – especially in the case of online
loans or encouraged longer loan terms beyond what lenders – restrict consumers to high-level pro forma
borrowers request or need.12 As such, consumer responses which lack nuance and specificity.23
protection regulation may have the unintended
The growth of online lending has created
consequence of forcing borrowers to use products
new challenges for designing and enforcing
less suitable to their needs or to borrow more money
regulations, largely around responsible lending
than they actually require. It is also possible that
and the presentation of information on websites.
the combination of higher administrative costs and
The increasing use of complex algorithms in the
lower profit margins may make some lenders more
assessment of borrowers’ capacity to take on a
dependent on repeat borrowers, whose loans can be
loan has raised concerns about a potential lack of
processed with greater efficiency, and with less worry
transparency and accountability.21 Lender’s websites
about “red tape”, in comparison to those of
also show a number of compliance issues. For
new customers.
example, the Consumer Action Law Centre4 found
that mandated warning messages were typically not
displayed in a way that drew consumers’ attention and
were often incomplete, incorrect, or difficult to read.Small Amount Credit Contracts: Briefing Report
12
What are the alternatives?
Alternatives to SACCs come in three main forms: This may prevent borrowers from pursuing cheaper
1) community-based lending schemes, 2) no- sources of credit.27 For example, many lenders
interest credit schemes, and 3) Centrelink advance consciously work to treat their customers in a friendly
payments. Existing research has noted a low level and respectful manner. Their relations with borrowers
of awareness of these alternatives among SACC may give people a rare sense of equality, dignity and
borrowers.12 Borrowers and financial counsellors importance. Likewise, many borrowers may turn to
alike have expressed that community based lending lenders because of shared cultural or community
schemes, no-interest loans schemes, Centrelink backgrounds12 or because of recommendations from
advance payments, and other such alternatives family and friends.28 In this way, specific lenders
are not currently sufficient to dampen the need for – or the practice of SACC borrowing in general –
SACCs.24 In addition, it is important to recognize that can become an ingrained aspect of an individual’s
for many borrowers the decision to pursue a SACC social network. This can imbue SACC loans
loan is based on particular features of SACCs and with acceptability, familiarity and other desirable traits,
SACC providers.13 These includes simplicity and and may make individuals less inclined to pursue
accessibility, the professionalism and sociability of alternatives.
providers, and the feelings of independence and
Initiatives that attempt to supply people with
self-esteem that such loans can provide.14
alternative forms of finance must therefore be attuned
Key areas for further consideration to the social and cultural context of credit provision.
This means, for example that the intrusiveness of
While current research can help us to gain a general
application processes and the potential for stigma
picture of SACCs lending and the experience of
need to be factored into the design of alternatives.
borrowers, there are many areas in which further
The financial cost of credit is only one aspect of
research is needed. We outline some key areas below.
borrowers’ decision-making, and in many cases
Why are alternatives to commercial SACCs financial considerations are outweighed by
unappealing to consumers? the emotional costs associated with alternative and
cheaper forms of credit – such as borrowing from
Alternatives to SACCs need to be considered, not
family members or low/no interest community loan
only as a means of meeting a need for finance, but
schemes.26,28 In short, it is clear from the research
in relation to practical and emotional aspects of
that SACC loans can provide borrowers with feelings
financial management. Decisions around debt and
of achievement, status, respectability, and freedom.
credit are not isolated individual choices and are
If alternatives fail to evoke or counteract these
not based solely on rational, economic calculations.
emotions, borrowers may not take them up.
Instead, such decisions are informed by social and
cultural norms about the meaning and morality of In addition, programs and policies must consider
money and debt.25 For some people, the decision to the practical benefits which SACC lending offers over
take out a loan evokes shame and a sense of failure. other, cheaper forms of credit, namely, a) the lack
For others, it provides feelings of autonomy, capability, of restrictions and limitations on available credit;
and self-reliance. People’s complex feelings about b) flexibility in dealing with individual circumstances;
borrowing decisions are influenced by wider social c) the convenience and accessibility of SACC
discourses about personal responsibility, social status providers; d) the simplicity of application processes;
and family relationships.26 e) the approachability and helpfulness of lenders;
f) the speed at which loans are processed; and g) the
It is also important to recognize that many borrowers
small minimum loan amounts. Even when community
form habitual relationships with SACC borrowing and
lending schemes and other forms of microfinance
emotional relationships with lenders; indeed many
are available to borrowers – and it should be noted
lenders actively cultivate such relationships.27 The
that almost all of these schemes are highly restricted
economic aspect of SACC borrowing is embedded
and are typically geared towards infrequent, “one
in a social relationship between lender and borrower.
off” expenses12,14 – it is clear that SACC loans offer
practical advantages which, for some borrowers, can
offset their comparatively higher cost.14,27Small Amount Credit Contracts: Briefing Report
13
How do views of lenders relate to an individual What are the implications of lenders branching
borrower’s view of their future? into other, less heavily regulated products?
While research reports a range of attitudes about As established above, regulatory burden has led some
lenders, few borrowers believe that the SACC lending SACC lenders to introduce or expand less regulated
industry should be abolished.12 This can, in part, be services such as pawn broking or gold buying.5,12
accounted for by the borrowers’ reliance on SACC Although this has been documented, the implications
lending, but may also relate to borrowers’ perceptions of these developments – especially for borrowers –
of their own financial futures. For example, two- are not well understood, and are an area for further
thirds of the sample in Banks et al.’s12 study of SACC research.
borrowers thought their lives would improve in the The growth of buy-now-pay-later services such as
future (typically because of an expectation of gaining
Afterpay
employment), while only a small proportion thought
that their lives would get worse. This may be because The popularity of buy-now-pay-later (BNPL)
many borrowers view SACC loans as a temporary services has skyrocketed in recent years, with BNPL
part of their lives, in which case they may be less transactions increasing by 90 percent between
concerned about potential reforms to the industry. the 2017-2018 and 2018-2019 financial years.29
Borrowers’ thoughts about their own personal futures Although BNPL services such as Afterpay are not
appear to shape their attitudes towards, and perhaps SACCs, these services present significant overlap
even their approaches to using, the SACC lending in their customer bases, and their use appears to
industry. Further research in this area could better be underpinned by some similar motivations. For
establish this relationship, and thus better understand instance, an ASIC review found that of customers
the role that lenders play in borrowers’ plans and who missed repayments for a BNPL service, 39
views of their personal futures. percent already had a small or medium amount credit
contract.29 Customers who are accessing BNPL
What does the bifurcation of the market mean for
services, similar to SACC customers, report a desire
SACCs and their consumer base?
for small amounts of credit and hesitance to use
With the introduction of online and app-based credit cards.29 Due to the newness of BNPL services
SACCs, the market appears to be shifting towards there is little research available on how consumers
segmentation between higher-income customers who are interacting with them. Some key questions are
take out loans online and lower-income borrowers whether, due to their younger customer base, BNPL
accessing SACC products via shop-fronts.1 The services may introduce young people to quick,
bifurcation of the SACC market is a recent development electronically accessible forms of fringe credit, and
and its implications are not fully understood, marking how BNPL services can be regulated when they do
it out as a key area for future inquiry. not fit easily under the purview of existing legislature.Small Amount Credit Contracts: Briefing Report
14
Conclusion
SACCs provide a source of consumer credit to
individuals who are unlikely to access credit from
banks, credit unions and building societies, whether
this is because they are seeking to loan a small
amount of money or because they are unlikely to
meet the requirements imposed by these lenders.
As outlined earlier, many of those who access
SACCs – especially through shopfronts rather than
online – are likely to be experiencing some kind of
socio-economic hardship. Notably, borrowers are
likely to be unemployed and receiving social security
payments. While this report has focused on providing
an overview of SACCs – what they are, how they are
regulated, and who is accessing them – it is crucial to
understand that the SACC industry does not operate
in a vacuum. As illustrated by the hardships faced
by much of their customer base, the SACC industry
is, in many cases, providing a short-term and flawed
‘solution’ to endemic issues of poverty and inequality.
We thus conclude this report by suggesting that while
further, or indeed smarter, regulation of the SACC
industry is an important avenue to be pursued, it will
have limited efficacy without genuine attention to
issues of poverty and inequality.Small Amount Credit Contracts: Briefing Report
15
ReferencesSmall Amount Credit Contracts: Briefing Report
16
1. Ali, J & Banks, M (2014), ‘Into the mainstream: 11. Gillam, Z (2010), Payday loans: helping hand
The Australian payday loans industry on the or quicksand?, Consumer Action Law Centre,
move’, JASSA, no. 3, pp. 35-42. report, .
of payday lending regulation in Australia’, Monash
University Law Review, vol. 39, no. 2, pp. 411–51. 12. Banks, M, Marston, G, Karger, H & Russell, R
(2012), Caught Short: Exploring the role of small,
3. National Credit Providers Association no date,
short-term loans in the lives of Australians. Final
‘Small loans big need’, accessed at https://
Report, Social Policy Unit, The University of
smallloansbigneed.com.au/ on 9/2/2021.
Queensland, .
trap: How payday lending is costing Australians’,
Consumer Action Law Centre.
13. North, G (2016), ‘Small amount credit contract
reforms in Australia: household survey evidence
5. Australian Securities and Investments & analysis’, Journal of banking and finance law
Commission (2015), Payday lenders and the and practice, vol. 27, pp. 203-22.
new small amount lending provisions, REP426,
report, accessed at https://download.asic.
14. Shevellar, L & Marston, G (2011), ‘Exploring
the role of fringe lenders in the lives of
gov.au/media/3038267/rep-426-published-17-
Queenslanders’, Australian Journal of Social
march-2015.pdf on 9/2/2021.
Issues, vol. 46, no. 2, pp. 205-22.
6. The Australian Government the Treasury (2016),
Review of the small amount credit contract laws,
15. National Credit Providers Association (2020),
Myths & Facts of Small Amount Loans, .
default/files/2019-03/C2016-016_SACC-Final-
Report.pdf on 9/2/2021. 16. City Finance (2021), Our Loans, https://
cityfinance.com.au/our-loans/
7. Brody, G & Minter, E (2019), ‘Why are we so
reluctant to act on payday lenders?’, The Sydney 17. Wallet Wizard (2021), Wallet Wizard, https://www.
Morning Herald, .
19. Sunshine Loans (2021), Hello Sunshine, https://
8. Crowe, D (2020), ‘Simpler lending rules for home sunshineloans.com.au/
loans and credit to free up the economy’, The
Sydney Morning Herald, .
friends or debt traps?’, University of New South
9. Knaus, C (2018), ‘Coalition accused of shelving Wales Law Journal, vol. 43, no. 2, pp. 674-706.
plans for payday lending crackdown’, The
22. National Credit Providers Association no date,
Guardian, .
au/?page_id=1278.
10. Wilson, D (2002), Payday lending in Victoria - a 23. Australian Securities and Investment Commission
research report, Consumer Law Centre Victoria,
(2019), Credit licensing: Responsible lending
report, .
at https://download.asic.gov.au/media/5403117/
rg209-published-9-december-2019.pdf on
10/02/2021.Small Amount Credit Contracts: Briefing Report
17
24. Packman, C (2014), Payday lending: Global
growth of the high-cost credit market, Palgrave
MacMillan, New York.
25. Singh, S, Myers, P, McKeown, W & Shelly, M
2005, Literature review on personal credit and
debt in Australia: families at risk deciding on
personal debt, RMIT University, .
26. Marston, G & Shevellar, L (2010), The experience
of using fringe lenders in Queensland: a pilot
study, University of Queensland, School of Social
Work &Human Services, Social Policy Unit,
.
27. Ramsay, I (2000), Access to credit in the
alternative consumer credit market, Office of
Consumer Affairs, Industry Canada, report,
.
28. Jones, PA (2001), Access to credit on a
low income: a study into how people on low
incomes in Liverpool access and use consumer
credit, The Cooperative Bank, report, .
29. Australian Securities and Investment
Commission (2020), Review of buy now pay later
arrangements, R600, report, accessed at https://
download.asic.gov.au/media/4957540/rep600-
published-07-dec-2018.pdf.You can also read
