By Cara Waters
The rise of a€?pay on need’ programs offering users improvements to their wages such MyPayNow and BeforePay keeps started cautions from customers advocates exactly who worry the growing sector resembles payday lending and could trap vulnerable users with debt.
The calls for legislation from customer teams come amid new revelations that the president of MyPaytoday, one of the main players in the growing sector, formerly directed a payday financing companies that was reprimanded by the business regulator and independently agered to settle almost $700,000 to subscribers they overcharged.
a€?Pay on demand’ or a€?wage advance credit score rating’ software posses appeared in the last couple of years as an offshoot for the booming purchase today, cover later on (BNPL) sector generated famous by the today $30-billion cherished ASX noted juggernaut Afterpay. Gold Coast based MyPayNow is advertising aggressively like on perfect time television, and is additionally sponsor of NRL group the Gold shore Titans; BeforePay try slated for an ASX list later on in 2010 and boasts prominent backers such as chairman Brian Hartzer, the previous Westpac supervisor, and investor James Spenceley. Continue reading “a€?Up there with pay check loansa€™: requires crackdown on salary advance applications”