Loans For Centrelink Customers – How Not To Swim With Loan Sharks!
Are you looking around for some quick cash such as loans for Centrelink customers. Before you dive in head first and end up with a major headache, you might want to read this first.
Centrelink approved loans and other Payday loan types are more and more these days being put under increased pressure by the regulatory authorities concerning the number of Australians who are falling victim to them.
The Bait for the Trap
The lingering fear that the regulatory authorities have for these products which include loans for Centrelink customers and other quick cash loans is they are getting more popular by the day.
They fear the problem could get a lot worse if future interest rate increases start to force struggling families to turn to these loans to make ends meet.
The natural instinct to protect the family is to try and keep a roof over the tribe’s head and may possibly start to leave many families vulnerable to Centrelink loans lenders who operate on the edge of the countries financial laws.
The Law of the Jungle
Typically, many greedy predatory lenders will go after lower income people who operate their cash flows on a day to day basis.
Especially those ones that have assets, such as real property, but little ability to save money, or get themselves out of a tight financial corner.
Be very careful, sometimes the only goal of these sharks is to dispossess from their victims as much of their ready emergency cash and assets as they possibly can.
They do this by readily granting them loans at truly usury interest rates as well as excessive commissions and fees.
Instances of true predatory lending can usually be identified by unusually high levels of debt default.
The End Comes All Too Quick
The regulatory authorities are pointing out that victims of true predatory lending practices tend to default rather quickly because of the high interest and high fee traps that were set.
It can be frequently even be in the first month when the default occurs.
Tragically and all too often the terrible outcome for these victims is they can end up losing their homes along with all and any equity they have built up while making their home repayments over the long haul.
Obviously, this could turn into bringing virtually unbearable hardship onto the family.
Some are Putting Up the Good Fight
The issue has become so serious that a combination of concerned consumer groups and other financial industry organisations have come together to assist in raising the public’s awareness and to try and tackle the problem head on.
The grouping includes the The Australian Banker’s Association, Consumer Credit Legal Centre, the Abacus, the Mortgage and Finance Association of Australia, Public Interest Law Clearing House and Legal Aid NSW.
Australia’s Credit Ombudsman service said, most victims of greedy rogue purveyors of loans for Centrelink customers and similar fast cash loans are financially sensitive individuals who are more than likely not that able to legally fend for themselves.
They tend to be those already in unenviable financial positions, such as people with learning or mental health disabilities. Centrelink customers, non-English speakers or even pensioners.
Doing the One-Two Step Legal Shuffle
Greedy Centerlink approved loans and other short term loans lenders are always trying to legally maneuver their way around consumer protection policies, such as the National Consumer Credit Protection (NCCP) act.
They push to the edge of legal liability, so their loans are structured in such a way they just manage to fall within the rules.
There is no end to the victims of these predators and a sad case originally quoted and highlighted by the NSW Consumer Credit Legal Centre demonstrates exactly what can happen.
An out of work pair with four kiddies made contact with the consumer watchdog, after they had been badly burnt by shameless money men.
The family had contacted a Centrelink loans money broker after their home had been threatened with foreclosure by their regular mortgage lender.
The pair, because of a lack of income because of unemployment issues had fallen behind on their financial responsibilities on the original mortgage loan.
They also needed to raise money to pay off a number of other debts, registration and Green slip for the family car and do a garage conversion, so they would have an extra bedroom for an upcoming fifth child.
The Centrelink approved loans broker, who had been well informed of the couples financial position still went ahead regardless and set up two high interest loans.
One at an incredible 23.6%.
The broker was handsomely paid out $15,000 dollars in fees and commissions, which was in addition to the lender’s fees.
The couple ended up owing $65,000 more than what their home loan amount had originally been.
This disaster left them with no hope of ever repaying the debt back.
Don’t Be Too Proud to Ask for Advice
Home owners who are enduring financial hardship and end up desperately considering things like Centrelink approved loans can get free, independent financial advice.
They can contact Government agencies who will direct them to the appropriate channel that can provide answers that will avoid them from having to take desperate measures.
The fastest way to find the most appropriate agency is to Google Government emergency financial assistance. These agencies are only to eager to help people avoid falling prey to cash loans for Centrelink Customers type lenders.
Whenever you have money needs, first talk to a mortgage broker who can demonstrate a proven track record of looking after their customers interests first.