ATM makes loans up to $ 2,000 in hours

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New touchscreen kiosks that allow Australians to apply for an almost instant loan are popping up in malls in so-called “threshing” regions including Minto in southwest Sydney, Illawarra and the Central Coast.

The ATM-style CashnGo kiosk allows a customer to enter their personal information, including bank and debit card information, and can then receive a loan of up to $ 2,000 in just a few hours.

However, experts warn that so-called “payday loans” charge high interest rates and also have multiple fees that can catch up people are already struggling to pay their bills.

CashnGo charges customers a set-up fee of 20% of the amount they borrow and a monthly fee of 4% of the same amount.

The total reimbursable costs cannot exceed the initial loan, for example a client who takes out a loan of $ 200 will have to reimburse a maximum of $ 400.

The company’s website reports that a one-month loan of $ 600 would incur $ 144 in fees, a $ 600 two-month loan would cost $ 168 in fees while a $ 600 three-month loan would cost 192. $ fees.

NSW Labor yesterday presented a notice of bill banning ATMs, calling them “insidious”.

Workplace Innovation and Better Regulation spokesperson Yasmin Catley said:

“These instant money lending machines and predatory payday loans bypass national credit laws and appear in many communities in New South Wales,”

“These machines cannot take into account the financial situation of customers and lock people into loans with exorbitant fees.”

But a spokesperson for CashnGo denied the claims, saying:

“This is absolutely absurd… I don’t know how they arrive at these accusations or conclusions. (The machines) are not in areas of low socioeconomic level, they are in areas where we have identified a need for this type of loan. You wouldn’t open a lending machine – or even Cash Converters or Money3 or any competitor – wouldn’t open a store in Rose Bay.

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