Loan sharks free to take pounds of flesh
LOAN sharks that offer shortterm loans at exorbitant interest rates will continue to operate unregulated until at least 2020 with the Government expected to miss its Christmas deadline to limit their power.
Weeks before he was rolled, former prime minister Malcolm Turnbull promised stalled laws which would limit short-term loans to about 10 per cent of a customer’s net in- come, would be introduced before the end of the year.
“Legislation will be progressed this year, with the changes applying 12 months after its passage,” Mr Turnbull wrote in a letter seen by The Sunday Mail.
But Government sources say the tough new laws are unlikely to be introduced to Parliament and pass both houses by the end of the year.
Treasurer Josh Frydenberg first announced a review of the proposed legislation in August 2015.
Since then the loan shark crackdown has been the responsibility of five ministers.
Assistant Treasurer Stuart Robert, the new minister in charge, was one of a handful of Liberal MPs who had pushed Cabinet to water down the draft laws, which also cap interest repayment, earlier this year.