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Westpac to stop funding payday lenders

Westpac to stop funding payday lenders

(7 August 2015 – Australia) Westpac has become the latest big bank to pull out of funding payday lenders, following a review of its involvement in the industry.

Westpac came under fire from the corporate watchdog this year and decided to review its lending to companies such as Money3 and Cash Converters, the two biggest lenders in the industry.

"Westpac can confirm today that after careful consideration, we have made the commercial decision to exit customers who provide payday lending products and will no longer support new customers where we are aware that they provide payday lending products," a spokeswoman said.

Payday lending refers to small consumer loans of a couple of thousand dollars or less, often used to cover household expenses, which attract very high interest rates.

A Westpac spokeswoman said the bank was working with its affected customers as they looked to find alternative banking services.

"We will honour existing contractual obligations as they manage this transition," she said.

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