This is a joint consumer submission strongly supporting the proposed reforms to small amount credit contracts (SACCs or payday loans) and consumer leases. Our organisations were actively involved in the consultation period of the Review, and some of our submissions were noted in the Review Final Report. We regard the proposed cap on costs for consumer leases, and the 10% protected earnings amount for consumer leases and payday loans as particularly critical reforms that would provide much needed protections for vulnerable borrowers. We would strongly oppose more lenient caps, which would entrench ongoing financial exclusion and fail to address the harm caused by these products.
