Because the market for small loans is becoming more defined, the regulatory authorities and the larger financial organizations are beginning to take a much closer interest.
A report from 4 Corners found that some lenders utilise bait and switch methods to circumvent laws regarding establishment fees and interest.
[3] Payday lenders have also come under fire due to accusations of predatory lending and charging excessively high interest rates.
[9] The infringements specified ranged from overcharging on interest and establishment fees to not adequately assessing their customers financial circumstances.
[11] The legislation was based on a 24 recommendations submitted by a government review on small amount credit contract law.