Loan sharks accused of predatory lending to desperate small business owners | The Business
A growing number of small business owners are falling prey to online ‘predatory’ lenders offering them quick cash.
Under pressure to to pay debts owed to the tax office and creditors, desperate business owners sign up to contracts they don’t understand, with interest charges as high as 300 per cent.
While loan sharks offer a quick fix for vulnerable businesses they are not subject to responsible lending laws.
The Assistant Treasurer says despite evidence that many borrowers are falling into a debt trap the government has no plans to change the laws.
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Credit to : ABC News (Australia)