Leading Australian personal finance service provider and second hand goods retailer Cash Converters supports the announcement by Assistant Treasurer Josh Frydenberg of the statutory review of the national small amount credit contract laws.
Cash Converters International Managing Director Peter Cumins said it was pleasing to see the quality and independence of the committee members selected to undertake the review.
“This level of independence is what the review requires and we are pleased the Minister will bring this review to a timely conclusion by the end of the year,” Mr Cumins said.
“The consumer advocates have mounted a very successful one-sided and negative campaign in the media over recent months that has created a high level of uncertainty around the future of the sector.
“This uncertainty has seen a significant erosion in the shareholder value of the company. The timely conclusion to the review process will remove that uncertainty.”
Mr Cumins said Cash Converters was and always would be a staunch supporter of a regulated industry with regulations that benefit both the lender and consumer.
“The current legislation is very subjective in a number of areas and greater guidance and clarity would be very welcome,” he said.
“The short term lending industry offers a legitimate credit choice for many hundreds of thousands of Australians, some of whom lack other means by which to access credit.
“This is an argument about choice. We support sensible regulation that protects people who seek credit choice and protects our license to operate.”