Loan sharks taking advantage of desperate Australians amid cost-of-living crisis, Asic warns

Asic’s deputy chair says lenders are forcing people into ‘extremely dire situations’ where repayments on a $300 or $400 loan end up being $1,500. Photograph: Daria Nipot/Getty Images/iStockphoto

Desperate Australians struggling with the cost of living are being taken advantage of by loan sharks whose small, high-interest loans are pushing them into “extremely dire situations”, the corporate watchdog has warned.

Consumer advocate groups warned the loans – used to pay for bills, rent, school fees, repairs and basic expenses – were increasingly sending people into “debt spirals” that are difficult to escape.