- Lenders exploiting NSW legal loophole
- 200,000 people paying $200m a year
- Fears rate cap could be scrapped
LENDERS are slugging the disadvantaged with interest rates of up to 780 per cent.
About 200,000 people in New South Wales are paying $200 million a year to lenders at super-high interest charges.
While NSW has a 48 per cent rate cap, lenders such as Cash Converters, AMX Money, Cash Stop and Money Plus exploit a legal loophole to reap more via brokerage fees, which aren't included in the limit. That loophole will be closed next month.
