You can find a large amount of high-cost short-term loans, also known as “payday loans”, wanted to customers, especially in disadvantaged neighbourhoods. Before you take down an online payday loan, customers should talk to a free, community based economic counsellor about handling their debts or alternative funding options. These can include difficulty variants for bills, power relief funds, crisis support, Centrelink improvements and low-interest loan schemes (see Financial counselling solutions).
If your customer has entered into a loan that is payday they need to think about whether or not the loan provider has complied using its obligations (see “Responsible lending responsibilities: suitability” in Understanding credit and finance, and “Unjust agreements”) and determine whether a grievance up to a dispute quality scheme is warranted. The NCCP Act distinguishes between four forms of loans: