The Salvation Army strongly supports the regulation of the consumer credit industry and the protection of vulnerable consumers. We believe that the harm caused by problem debt and unregulated consumer credit on families and communities already facing hardship is significant. The regulation of this industry is long overdue and we welcome the introduction of this legislation.
However, we believe that this cannot be fully achieved without a comprehensive and holistic strategy that includes addressing usurious interest rates and viable alternatives to loan sharks for some of our most our vulnerable communities.
We urge the Government to take this opportunity to put in place greater protection and options for those who are most vulnerable and trapped in problem debt.