CEO Slams Inaccurate And Misleading Claims About SACC Loans

Feb 19 2016

CEO Slams Inaccurate And Misleading Claims About SACC Loans

NCPA CEO, Philip Johns, has slammed inaccurate and misleading claims about the small amount loans industry made by Good Shepherd Finance in a recent ABC Radio interview.

Criticising the type of research presented by Good Shepherd boss, Adam Mooney, Johns stated that it,

      "was an omnibus survey of many households (which) did not survey consumers in regards to payday loans or small amount credit contracts".

Johns believes that this research does not reflect the true state of small amount borrowers in the Australian market today.  In the interview Johns referred to third party independent research recently completed by CoreData in which

      "They looked at 2.4 million small amount credit contracts and found that the typical user is actually an employed male, 37 years of age."

This profile of the average borrower does not agree with the thrust of the interview which claimed that small amount lenders target single income women.  The CoreData statistics show that this is not the case.  Futhermore, there are now strict legilsative restrictions in place regarding responisble lending obligations and restricted incomes.

In the interview, Mooney insisted that the amount borrowed by women is increasing.  Once again, CoreData statistics show that there is no increase in the average small amount loan taken out over the last two years which has dropped slightly to $538.

This radio interview seems to be just a consumer activist media beat-up of old cases which could not possibly arise now with the advent of new restive legislation which began on 1 July 2013.

NCPA continues to inform the current Legislative Review Panel with accurate and up-to-date research of the small amount consumer credit (SACC) loans.

 

Media and interested parties are directed to a website

that was specially constructed by NCPA using CoreData research outcomes

to inform the public regarding the actual state of small amount lending in Australia >>> www.SmallLoansBigNeed.com.au

 

A full transcript and audio of the interview done on 19 February 2016 can be found on this link to ABC Radio.