https://www.youtube.com/watch?v=lzuW3_vwbok&ab_channel=ACurrentAffair
6.31
1. What is a PayDay loan?
A payday loan is a loan given with no background research and low-no interest.
2. List 4 PayDay loan companies operating in Australia.
IFinance, Loans by Phone, Cigno and Sunshine loans.
3. Why do people use PayDay loans instead of banks?
Banks charge collateral and do background research. Payday loans are portrayed to give money
without reason.
4. Fill in the table below.
Viewpoint 1
(Cigno Loans)
Viewpoint 2
Cigno customers
Use quotes, statistics, examples.
Use quotes, statistics, examples.
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5.
Its not their fault that people can’t pay
back the fees.
Not illegal practice but not moral.
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Add on prices end up charging 500% of
original loan.
Fails to communicate therefore prices
add up.
Seen as a scam
Cigno not telling customers in advance
about the term and policies.
What is ASIC and how are they connected to the story?
The Australian Securities and Investments Commission is an independent commission of the
Australian Government tasked as the national corporate regulator. ASIC's role is to regulate
company and financial services and enforce laws to protect Australian consumers, investors and
creditors.
6. What advice would you give the Cigno customers for the future?
Do your research. Expect not to communicate. Expect to be charged a billion percent extra.