Nimble has proven themselves to be not-so-nimble when it comes to “smart little loans”. Being known for approving loans to customers at very high interest rates, they have been caught up in a controversy storm following an investigation by the Australian Securities and Investments Commission. After ASIC looked into their lending practices, they discovered that Nimble had failed in its duty of care to be responsible in approving loans for consumers.
It was found that Nimble ASIC had not been properly assessing the financial situation of their customers looking to take out payday loans. Instead, they had been using unreliable algorithms to determine a customer’s ability to take out loans that did not properly take into account customer’s financial information. Thus, they failed to “make proper inquiries of consumers’ requirements and objectives,” as instead they were “of a general nature and resulted in not enough information for Nimble to fully understand the consumer’s needs.”
Subsequently, Nimble “did not take sufficient or appropriate steps as required by law before providing a loan to the customer.” They “failed to consistently recognise” when consumers were making repeat loan applications within a short period of time.
As a consequence of Nimble’s inefficiency when assessing a consumer’s ability to take out payday loans, the company must pay more than 7,000 customers in excess of $1.5 million through a remediation program run by Deloitte. This refund cannot take more than 6 months to be completed.
ASIC also recommends customers affected by Nimble’s lending practice should contact Nimble first, and if they still remain unsatisfied with the outcome, should lodge a complaint with the Credit and Investments Ombudsman.
In addition, a $50,000 donation to Financial Counselling Australia must be made under Nimble’s name, as well as a review of its current business operations and engagement with the consumer credit regime, by an external compliance consultant.
Nimble chief executive, Sami Malia, spoke out following the investigation. He states that the company “regrets any inconvenience” caused to consumers and are working to rectify these concerns.
“Nimble has identified and promptly resolved these issues. They affected around 1.2 per cent of loans written during the period from 1 July 2013 to 22 July 2015”.
“These application assessment issues were entirely unintended and were resolved in collaboration with ASIC. There has been no adverse findings against Nimble”.
Mr Malia also comments “Nimble is always striving to have the best credit assessment systems and has made a significant investment in its application assessment processes that allow Nimble to continue making responsible lending decisions.”
ASIC’s investigation not only highlights Nimble’s lending practices, but it also brings attention to the need for stronger laws in regards to the payday lending industry.
ASIC Deputy Peter Kell, in a statement, said, “This outcome is a further example of ASIC’s strong focus on the payday lending sector. This remains a high priority area for ASIC, and we expect the industry to continue to lift its game.”
Gerard Brody, chief executive of the Consumer Action Law Centre, weighed in on the situation.
When asked about his thoughts on the Nimble investigation, he stated, “To be honest, I found it unsurprising.”
“The consumer sector has known for years there is a systemic problem in the payday lending industry and ASIC’s probe has confirmed our concerns that these lenders aren’t doing the required due diligence and ensuring people are able to repay loans.”
“While ASIC can take action and get people $1.5 million in refunds, that’s after the harm has occurred.
“It really underscores why we need stronger laws to protect customers.”
Mr Brody recommends an interest rate cap of 48 per cent on all consumer credit. This is in comparison to the current interest rate of small-amount loans under $2000 that can have annual interest rates of up to 400 per cent.
He believes, “In our experience with clients, people have a really ambivalent relationship with payday lenders.
“They’re often in a financially desperate situation and see this as the answer that’s going to give them some relief, but they quickly become aware that the relief is short-term and when the repayments roll around realise they’re being ripped off.”
This is why Consumer Action also calls for a stricter limit on how much a borrower’s income a payday lender can deduct to repay a loan; being capped at 5 per cent.
However, chief executive of the National Credit Providers Association peak body representing payday lenders, Phil Johns, disagrees with this sentiment.
He counteracts, “Nimble does not lend to anyone receiving benefits, so to draw conclusion that everyone using ‘payday loans’ is ‘financially desperate’ is misleading in this case and does not represent the vast majority, who use this product successfully.”
Mr John’s comments that payday loan interest rates should not be calculated annually as it is unfair for consumers whose loans do not run for a year minimum.
“The key word is ‘annual’ and does not become meaningful until a loan runs for one year, so for any loan that runs for less than a year it is misleading.”
Mr Johns also predicts that any payday lender company who is focused on short-term sales rather than compliance with consumer credit regime will “not be in business in five years’ time.
“It is clear under principles based legislation, lenders must take the most conservative view of the law, not necessarily the rule of law. A constant theme from ASIC is there must be individual assessment of a consumer’s situation.”
ASIC’s probe into Nimble’s lending practices is not the first time Nimble has been in the middle of a controversy. Prior to this investigation, Nimble had been criticised for its TV advertising which supported customers taking out payday loans for day-to-day living expenses as an alternative to taking advantage of any hardship programs offered by utility providers.

Rural debt in Australia has climbed to crisis levels of over $60 billion, leaving many Aussie farmers and rural workers looking for professional debt relief services. Unmanageable levels of debt and insolvencies plague hundreds of Australian farmers and rural workers each year, with many facing foreclosures of their homes and farms by the banks.
A research economist on the Queensland Government’s Rural Debt and Drought task force, Ben Rees, says that in the past four decades, the prevailing unsustainable policies of agricultural economies-of-scale have led to the creation of large farms with low incomes.
Since the 1970s, the net value of farm production has only reached $15 billion while rural debt levels have soared to over $60 billion.
With debts proving to be more problematic than the drought to many, some Aussie rural dwellers are turning to professional services for debt relief and bankruptcy advice. While informal debt arrangements,such as entering into a Debt Agreement,are a viable solution for some,declaring bankruptcy is the only option left for others.
Filing for bankruptcy on a voluntary basis can be a highly daunting and stressful process. With Australian bankruptcy laws becoming more and more complicated, it can be difficult for individuals to understand their full implications if they do not have any experience with bankruptcy.
That’s why, if you are considering applying for bankruptcy,it is important to speak to an expert and seek professional bankruptcy advice before making this life-changing decision. Debt Free Australia (DFA) is a team of insolvency specialists who can provide you with the bankruptcy advice you need.
At DFA, we have your best interests at heart. If we do not believe that filing for bankruptcy is the most appropriate and beneficial solution for you, we will not force it upon you. We have a full suite of other debt solutions available that may be more suitable for you, including Debt Agreements and Personal Insolvency Agreements. To speak to a registered debt adviser today and receive obligation-free bankruptcy advice at no cost, call 1800 462 767.

According to a recent survey conducted by St George and the Melbourne Institute, student HECS debt has hit a 14-year high. The report indicates that Australians are still heavily affected by the debt accumulated from their tertiary studies, despite no real interest charged on HECS/HELP loans.
Credit card debt, on the other hand, has hit a six-year low. This comes following record low interest rates on loans, which has made it easier for Australians to repay their debts quicker.
The report also shows that four out of 10 Australian households were debt free in the June quarter of this year.
However, HECS debt remains at its highest levels since 2001.
Almost one quarter of the survey respondents indicated that they had debt related to tertiary education – an increase from 20.9% in the previous month.
The increase could be a result of the higher number of Australians undertaking higher education courses as well as the relatively high rate of unemployment among younger Australians.
Three quick tips to reduce your HECS/HELP debt:

1. Create a budget. Use a budgetto work out how much extra money you can afford to pay on your HELP debt.
2. Make voluntary repayments. You can make voluntary repayments to the Australian Taxation Office at any time and for any amount. The Australian government incentivises early payments by offering a deduction of over $500 for voluntary repayments.
3. Make a repayment before 1 June. This will minimise the amount you have to repay as your HELP debt is indexed on 1 June each year, increasing the amount owed to keep up with inflation.

However, if you have credit card debt or a personal loan, it is usually better to pay those debts first because they have interest charged on them.
Debt Free Australia (DFA) has helped thousands of Australians manage their debt through formal and informal debt solutions. Our insolvency experts are licensed and experienced to help anyone struggling with debt.
Call usnow for free financial adviceor to make an enquiry,on 1800 462 767.

You’re struggling with repaying your debts. You’re unsure about what your options are. You’re after affordable and professional assistance to manage your outstanding debt levels.
Debt Free Australia (DFA) is here to help, and what’s more – we’ll do it for free!
At DFA we offer a free and unique debt assessment to give you a better understanding of the level of debt you are facing. Furthermore, by using state of the art computer software, DFA’s free service delivers a customised assessment to evaluate the most appropriate solutions to suit your circumstances.
After years of refinement and close work with DFA’steam of debt specialists, our software has developed into a credible and accurate debt assessment system in accordance with DFA’shigh service standards. After providing details regarding your current financial situation, including personal debt details, the value of any existing property or leased assets, and your income and expenses, our free debt assessment tool will analyse your submitted data to identify the least drastic solution to solve your debt concerns – just like a DFA representative would work directly with you to determine the path of least consequences.
These solutions may include a:

1. Debt Agreement
2. Personal Insolvency Agreement
3. Bankruptcy
4. Informal Arrangement

 
With DFA, you can rest assured that all details disclosed during our free debt assessment will remain confidential and can be erased from our database at your request. Whilst participation is obligation-free, DFA understands that professional terminology may a little difficult to understand. That is why after the submission of your debt assessment a DFA representative may be in contact, to offer further free, impartial and expert advice regarding your results and to assist you in making a more informed decision regarding your financial future.
Click here to receive a professional debt assessment without the professional price tag, or if you prefer, contact DFA’s toll-free and 24/7 hotline on 1800 462 767 to personally speak to a professional about your individual situation today.

If you’re experiencing financial difficulty, it is important to understand you are not alone. Every year thousands of Australians fall into undesirable financial situations which, without the right financial management skills, can quickly spiral out of control.
If you have found yourself in this situation and are losing confidence in your ability to repay your debts, it is crucial that you do not ignore the signs and instead seek professional debt help. Recognising and acting on this early may reduce the implications and severity of your case.
Debt Free Australia is an independent debt assistance organisation with a track record in helping financially distressed Australians get debt free. With a team of professional debt specialists, as well as a fully qualified Chartered Accountant and Registered Trustee in Bankruptcy on site, you can rest assured that you are receiving quality debt help from experts within the industry.
The debt help services offered by Debt Free Australia range from free online debt assessments and over-the-phone debt advice, to the full administration of formal debt arrangements – including Debt Agreements, Personal Insolvency Agreements and Bankruptcy.
Unlike many other debt advisory firms whose debt help is charged by the hour, at Debt Free Australia we have highly trained Personal Debt Advisors who will offer you impartial advice and won’t charge you a cent until we have found the debt solution that meets your needs.With a guaranteed promise to beat any written quote for insolvency specialist fees in Australia, you can rest assured that Debt Free Australia’s primary objective is to provide struggling Australians with the debt help they need to redirect the course of their financial future.
So if your financial affairs have seen better days, take action now. Contact 1800 462 767 for more information on how DFA can help you, or to receive free advice on your individual debt situation.

Feeling a little guilty after splurging on your credit card(s) this Christmas?
You’re not alone in your credit card woes. In the past two decades, the amount owedby the nation collectively on credit and charge accounts has surged from $6 billion to almost $50 billion.
With the season of giving now over, it’s time to review four hard truths about credit card debt in Australia – and decide whether you need to re-examine your own financial situation:

1. Many Aussies look at their credit card debt interest through rose tinted glasses. New figures by the Australian Bureau of Statistics show that about two thirds of all credit card holders are paying interest on their credit cards – but only one third are actually aware they are paying interest at all. As the saying goes, knowledge is power – make sure you know the exact terms of the interest rates on your credit cards to avoid any nasty surprises.
2. In Australia, banks earn a greater return on credit cards than on home loans.Credit cards accumulate up to 9 per cent of profits for the big four banks, while the National Australia Bank earns only about a 1.3 per cent margin on home loans.
3. Even when the cash rate is low, Australian banks don’t cut credit card interest rates. While home loan rates have echoed the lowcash rate since 2011, credit card interest rates remain steady.
4. Credit card reward programs are not worth your while– unless you spend over $18,000 a year on your card. Yes, those flight and cash incentives might seem enticing, but membership often comes hand-in-hand with high annual fees and interest rates – so think twice before signing up.

Struggling to meet credit card repayments is a problem faced by many Australians. If you need credit card debt help and advice, or think you have reached the stage where a formal debt solution (such as filing for bankruptcy) is required, call the insolvency experts at Debt Free Australia on 1800 462 767.

Debt can appear to be a complicated, unmanageable and often overwhelming problem for many individuals facing it alone. The impacts ofthe associated stress and anxiety from debt can affect all areas of an individual’s life – from family and personal relationships, to their own personal wellbeing.
Like a cyclone, you can be lucky enough to be aware of your debt before it really hits – or it can appear out of nowhere. Dependent on itssize and intensity, debt can affect an individual’s life in manyways, sometimes leaving behind a trail of destruction.
Debt Free Australia has helped thousands of individuals to get free of debt and move forward in their debtfree journey. Our product offerings vary depending on your individual circumstances.We are able to provide the assistance needed when tackling debt and the debt relief you seek.
After we help our clients to get debtfree it falls back to them to maintain a debtfree lifestyle. Some small tips we recommend for maintaining your financial position once free from debts are:

1. Know good debt from bad debt

It is important to always evaluate your debt so you are able to prioritise more easily and work around your lifestyle – not your debt.

2. Do not add to your bad debts

Whether planned or unplanned, it is important that when faced with bad debt you do not add to this – for any reason!

3. Give purpose to your spending

If you are in debt, it is important to recall how this may have happened. Think before you spend! Setting weekly, monthly or even yearly goals and objectives surrounding your debt can provide you with the confidence you need to kick debt for good
By following the above advice, slowly but surely you will succeed in kicking those debts to the curb. Throughdifferentiating between good and bad debts, not adding to your bad debts, and adding meaning to your purchases, you can focus on fulfilling those financial projects you once thought were impossible!
For a free debt assessment today, contact Debt-free Australia on 1800 462 767.

Debt consolidation, otherwise known as ‘refinancing’, is one of the many personal debt solutions available to help financially distressed Australians overcome their debt issues.
People normally pursue debt consolidation loans for two main reasons;to secure a lower interest rate, and/or to reduce the number of payments needed to manage each month.
But how well do debt consolidation loans really weigh up in comparison to other personal debt solutions?
Despite its perceived benefits, it is important that before you go ahead and apply for a debt consolidation loan, you compare the repayments and rates of interest of your current debts and see how they compare. Whilst debt consolidation loans may be sold as a highly effective debt solution, without careful assessment of the loan and its requirements you may find yourself taking out a loan you cannot afford, causing your finances to deteriorate. And because you are attempting to pay off many debts at once, you may find that the term of a consolidation loan is quite lengthy.
An alternative solution is a Debt Agreement or Personal Insolvency Agreement,both of which allow insolvent Australians enter into an arrangement with their creditors to negotiate a personalised payment plan to settle their unsecured debts. These personal debt solutions often see creditors agreeing to reduce the outstanding debts to be repaid, and can allow for more flexible payment periods. For example, if you owe $100,000 in unsecured debt, it is possible that with Debt Free Australia your debts can be reduced to as little as $60,000 (plus costs and fees for administering the Agreement).
Because they are legally binding on all creditors and allow you the opportunity to negotiate your debts to more achievable terms, entering into a Debt Agreement or Personal Insolvency Agreement can be considered as one of the most effective options for Australians experiencing financial difficulty.
For more information, or to find out if you’re eligible for a Debt Agreement or Personal Insolvency Agreement, give Debt Free Australia a call today on 1800 462 767. Our toll-free hotline is open 24/7 so that we’re available to talk anytime you need.

Despite Australia’s economy being forecasted as the 13th largest in the world in 2015, Australian households now have the fifth highest debt levels.
Australian household debt figures have recently sky rocketed to new heights, with some of the latest reports –including those of the AMP and the National Centre for Social and Economic Modelling – claiming that the average household debt in Australia has quadrupled compared to that of 30 years ago.
The current average household debt in Australia sits roughly between $245,000 – $250,000.
Various reports surrounding this concern have calculated that it would take the average Australian household 18 months to pay off all of its outstanding debt – if they could go without food!
So how did we find ourselves in this position? What and who is to blame?
The influence and combination of particular variables – including rising unemployment rates, housing prices, fluctuating interest rates and general overspending –are all significant factors that can result in the accumulation of debt.
Understanding your circumstances and current situation in line with these factors will help us provide you with the right solutions to break free from debt.
The warning signs of debt can be clear indicators for immediate action. Debt Free Australia delivers the right solutions for individuals affected by debt. Our goal is to get you out of debt, not to give you even more!
What we can do for you is going to vary depending on your circumstances. Call us today on 1800 462 767, no obligations!
Our trained professional personal debt advisors are sure to have the right solutions tailored to you.

‘Positive’ credit card reforms may not be all they seem, with some changes doing more harm than good and trapping Australians in debt for longer.The average credit card debt now lingers around for an average of 27 years – two years longer than the average in 2012.
Many credit card providers have circumvented the Australian government’s crackdown in 2012 that was partly designed to help consumers pay back their credit card debt quicker.
One of the measures mandated by the government was forcing credit providers to disclose to card owners the estimated amount of time and money it would cost them to pay off their debt if they only paid the minimum amount each month.
Since 2012, credit card providers have dropped the minimum repayment from 2.44 per cent to 2.35 per cent.
Now, as a direct result, the estimated time needed to repay debts has increased from 25 years and 10 months, to 27 years and one month.
The good news is that the average amount each credit card holder has to repay has decreased from three and a half years ago, from $6,629 to $6,591.
Looking for professional and reliable debt advice tailored to your situation?
If you are suffering from bad debts such as credit card debt and are seeking a professional debt solution or debt advice, Debt Free Australia can help.
Call one of our licensed debt advice experts today on 1800 462 767 to speak about your personal financial situation and receive the right advice.
All calls are free of charge and strictly confidential.