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In 2017 the Australian Federal Government announced that it was drafting new legislation designed to protect vulnerable Australians for payday loans, consumer leases and similar products. [11] The legislation was based on a 24 recommendations submitted by a government review on small amount credit contract law.
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Direct entry (also called CS2) [8] can be used to transfer funds between bank accounts in Australia. Clearing and settling is regulated by AusPayNet as the Bulk Electronic Clearing System (BECS). Direct entry uses the BSB and account number to identify the bank and accounts to debit and credit. Some common uses of the direct entry system include:
Some fee-paying students can obtain loans under the Higher Education Loan Programme, called FEE-HELP loans, to cover all or part of their fees. This is available to Australian citizens, New Zealand citizens and permanent humanitarian visa holders. Undergraduate students who obtain these loans are charged a 20% loan fee on top of the amount ...
The FCS guarantees certain deposits (currently up to $250,000 for each account holder at any ADI incorporated in Australia). All deposits held by an account holder with a single financial institution are added together towards the FCS limit, including accounts with any other business that the ADI operates under a different trading name.
For this reason most no doc loans are for business purposes or are for investment in something other than residential property. Private money is the main source of no doc loans, often with interest rates charged at 2% to 6% per month (24% to 72% p.a.). Non-conforming lenders focus on the lower risk no doc loans and offer more competitive ...
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