Response to AFR article, 'Credit Corp scraps short term lending'

The Australian Financial Review's story today on Credit Corp leaving the payday lending space, blames ASIC's use of the term "payday loans".

Here is our position.

Credit Corp's decision about leaving the payday loan industry is a commercial matter for them. 

On terminology, ASIC uses the term "payday loans" because that is what ordinary consumers call this product. Most people have not read the National Consumer Credit Protection Act 2009 and are not familar with the term "small amount credit contract".

Payday lenders themselves use the term "payday loans" in their Google advertising, because they know people use that term.

More broadly, ASIC recognises the role of payday loans - we simply want better standards from lenders so consumers don't come off second-best.