Need to know
- Lenders, by law, must take reasonable steps to check that a person is able to repay a loan before approving it
- New reforms proposed by the Australian government will remove this requirement
- Financial counsellors fear they will be overwhelmed if the reforms go ahead
When Shahir Azamy walked into a Commonwealth Bank branch in Melbourne in December, 2016, it was to get information about a loan for a car.
Shahir, who had just turned 18, lived with his three siblings and their father and mother, whose disability support pension and carer’s payments covered the bulk of the family’s living expenses.
Shahir worked two jobs at the time, one at a clothing store and the other at Woolworths, and his combined pay barely covered th…
Read the full article at: https://www.choice.com.au/money/banking/everyday-banking/articles/responsible-lending-laws-if-axed-will-engulf-australians-in-debt-they-cant-afford
