Payday Lenders - Correction

The article regarding Payday Lenders which appeared on the Plan for Life Website on 14th July 2015, was removed on 15th July 2015, as it contained out of date and incorrect information regarding the company Money3. The latest position regarding Money3 was released to the ASX on 1st July 2015 and can be viewed here:

This, together with further advice we have received from Money3, is to the effect that:

  • Following discussions with ASIC, Money3 sought legal advice which satisfied Money3 that its loan product, which ceased in March 2014, did not breach the National Consumer Credit Protection Act nor its responsible lending obligations. No penalties were applied by ASIC for this product and as a demonstration of commitment to its customers Money3 decided to reduce some fees and charges on certain loan contracts and pay a cash refund to certain customers in the total amount of $100,000.

  • There was no finding by ASIC of misleading conduct by Money3 regarding the LACC loan and no fee exists for early repayment

  • Money3 has stated that the product was specifically designed with the interests of customers in mind to maximise flexibility of repayments without hardship and that it is not correct to say that the loans were a trap for low income customers.

Plan for Life apologises for the inclusion of previous material on the PFL Website which may have been construed as disparaging to Money3, and refers you to the above points and Money3’s ASX Release, which present the correct situation.