Financial Rights Legal Centre
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Payday Lending Project

There’s a Better Way than Payday

What is a payday loan?

‘Payday loans’ are expensive, short-term loans commonly for amounts between $100 and $2,000.

Who we are

The Payday Lending project is a joint project between the Consumer Credit Legal Centre and Legal Aid NSW. It is a 12 month project and commenced in July 2012.

Among other objectives, the project seeks to:

  • assist as many clients who have contracts with pay day lenders as possible
  • work with financial counsellors and other solicitors with payday lending clients to achieve the best outcome possible
  • run strategic litigation and casework to ensure compliance with consumer protection legislation
  • raise awareness about the alternatives to short term, high cost credit

Who we help

The Payday Lending Project is a state-wide service. You can obtain free advice from the Consumer Credit Legal Centre or any Legal Aid NSW office.

In many cases we will also be able to provide ongoing assistance and representation.

What we can do

Payday loans can be unfair. If a payday lender has acted unfairly in any way, for example by:

  • providing a loan the consumer cannot afford
  • requiring the consumer to repay it early
  • charging excessive fees

The consumer may be able to do something about it. It is important to act early and get advice. See below how we were able to help Jason with his payday loan.

Jason is a single man living on Centrelink benefits. He lives week to week and has no savings.

Jason was having trouble paying his bills and received a final notice from the electricity company. He didn’t want his electricity to be disconnected so decided to obtain a short term loan from a payday lender.

Jason couldn’t make the repayments on the loan. He got help from a lawyer at Legal Aid NSW. It turned out that the loan was unfair and after a few letters from the lawyer the lender agreed to waive all the interest and fees on the loan. Jason also learnt that, if he gets into trouble again, he can come to an arrangement with the electricity company instead of getting a loan.

If you or someone you know is in a situation like Jason, get advice and act early.


This service is available to people across NSW.

Contact us

  • Call the Consumer Credit Legal Centre’s Credit and Debt Hotline on 1800 808 488  for help over the phone
  • Make an appointment at a Legal Aid NSW office near you.