1 00:00:00,200 --> 00:00:02,560 Speaker 1: So there are a whole load of moves from the 2 00:00:02,560 --> 00:00:04,720 Speaker 1: government today and one of the latest is make it 3 00:00:04,800 --> 00:00:07,920 Speaker 1: easier to access loans. And that's with the Credit Contracts 4 00:00:07,920 --> 00:00:11,360 Speaker 1: and Consumer Finance Act, otherwise known as the Triple CFA, 5 00:00:11,720 --> 00:00:14,640 Speaker 1: and that's officially been scrapped. That's the one with the bags, 6 00:00:14,680 --> 00:00:16,919 Speaker 1: asked you how much smashed avocada, you ate, and then 7 00:00:16,960 --> 00:00:20,000 Speaker 1: decided to take away your loan. Now, while some are 8 00:00:20,040 --> 00:00:23,320 Speaker 1: celebrating about the home loan side of it, others worry 9 00:00:23,440 --> 00:00:26,120 Speaker 1: about what it might mean for people accessing smaller loans 10 00:00:27,080 --> 00:00:28,960 Speaker 1: who were always affected the most in the first place. 11 00:00:28,960 --> 00:00:32,280 Speaker 1: So Sasha Lockley is the chief executive of Social Lender 12 00:00:32,360 --> 00:00:39,680 Speaker 1: Money Social Lender Money sweet Spot, and she joins me now, sessha, Hello, Hello, 13 00:00:39,800 --> 00:00:43,160 Speaker 1: how are you very good? Okay? Is this good news 14 00:00:43,159 --> 00:00:44,760 Speaker 1: for people wanting first homes, first. 15 00:00:44,640 --> 00:00:49,159 Speaker 2: Up, first homes. Yes, absolutely, demand's going to go up. 16 00:00:49,240 --> 00:00:51,800 Speaker 2: I like your analogy. We are seeing the light at 17 00:00:51,800 --> 00:00:53,400 Speaker 2: the end of the tunnel. I'm with you. I'd vote 18 00:00:53,440 --> 00:00:55,000 Speaker 2: for you if you were in our government. That sounds 19 00:00:55,120 --> 00:00:59,440 Speaker 2: like a great speech there, but I am still concerned 20 00:00:59,480 --> 00:01:02,920 Speaker 2: because we're you know, the regulations have gone today around 21 00:01:02,920 --> 00:01:07,080 Speaker 2: their affordability requirements, no more avocados. But what I already 22 00:01:07,120 --> 00:01:09,960 Speaker 2: see is there are lots of people already on affordable 23 00:01:10,000 --> 00:01:12,640 Speaker 2: debts that were able to access back credit anyway. So 24 00:01:12,840 --> 00:01:17,800 Speaker 2: I'm worried that the relaxation of the requirements may mean 25 00:01:17,800 --> 00:01:20,200 Speaker 2: that people can get in debt that they can't afford. 26 00:01:20,560 --> 00:01:24,039 Speaker 2: And that's because actually people believe what banks for finance 27 00:01:24,080 --> 00:01:26,360 Speaker 2: companies will tell them around their own level of affordability. 28 00:01:26,640 --> 00:01:29,120 Speaker 2: So if you go to some of the bad actors 29 00:01:29,160 --> 00:01:32,680 Speaker 2: in this financial financial system, they may say, yes, absolutely, 30 00:01:32,680 --> 00:01:36,440 Speaker 2: you can afford it, when actually that's they're not living 31 00:01:36,440 --> 00:01:37,880 Speaker 2: that life, and maybe people can't. 32 00:01:37,959 --> 00:01:40,800 Speaker 1: So here's my thing about the triple C. If they 33 00:01:40,880 --> 00:01:43,280 Speaker 1: rules right, they were drawn up. They were drawn up 34 00:01:43,280 --> 00:01:46,680 Speaker 1: really to stop loan sharks, you know. But it also 35 00:01:46,800 --> 00:01:50,280 Speaker 1: stopped banks from issuing smaller loans, which was an unforeseen 36 00:01:50,400 --> 00:01:54,520 Speaker 1: thing from the whole appole tak okay ironically, because they 37 00:01:54,520 --> 00:01:56,360 Speaker 1: couldn't get the loans on the banks because the bank's 38 00:01:56,360 --> 00:01:59,680 Speaker 1: actually policed it harder. That drove people back to loan 39 00:01:59,720 --> 00:02:05,720 Speaker 1: sharks again. Actually, So surely scrapping the cc I is 40 00:02:05,760 --> 00:02:08,040 Speaker 1: still a bitter situation than keeping it, don't. 41 00:02:07,840 --> 00:02:10,600 Speaker 2: You think Yeah, I think it's a balancing act. Like 42 00:02:10,639 --> 00:02:13,040 Speaker 2: you said, I think we shouldn't have compliance that adds 43 00:02:13,040 --> 00:02:15,160 Speaker 2: cost to consumers. And that's what happened, and there were 44 00:02:15,160 --> 00:02:21,200 Speaker 2: some unintended consequences. But I really think that we we've 45 00:02:21,200 --> 00:02:24,240 Speaker 2: seen in the past that people will go to the 46 00:02:24,240 --> 00:02:25,920 Speaker 2: place where they can get yes. You mentioned in your 47 00:02:26,040 --> 00:02:29,000 Speaker 2: in your chat before that people are still having tricky 48 00:02:29,080 --> 00:02:30,840 Speaker 2: situations and they need to find ways to pay. So 49 00:02:30,960 --> 00:02:34,160 Speaker 2: I'll go where we'll say yes. And historically and now, 50 00:02:34,760 --> 00:02:36,639 Speaker 2: there are some lenders that are more likely to say 51 00:02:36,680 --> 00:02:39,000 Speaker 2: yes that may not always have your best interest at heart, 52 00:02:39,040 --> 00:02:41,080 Speaker 2: because at the end of the day, lenders make money 53 00:02:41,120 --> 00:02:42,560 Speaker 2: out of people being in debt, don't. 54 00:02:42,400 --> 00:02:45,160 Speaker 1: I yes, but most people, most people do have some 55 00:02:45,200 --> 00:02:49,880 Speaker 1: financial knowledge, most people don't make mistakes, most people aren't 56 00:02:50,160 --> 00:02:53,360 Speaker 1: as silly, right, but absolutely, But these rules, so this 57 00:02:53,480 --> 00:02:55,480 Speaker 1: rule is for a minority, and we need to find 58 00:02:55,480 --> 00:02:57,960 Speaker 1: a balance with these rules between making it easier to 59 00:02:58,040 --> 00:03:00,960 Speaker 1: exous loans for those people who are finentially but also 60 00:03:01,040 --> 00:03:04,840 Speaker 1: protecting vulnerable people from spiraling into too much debts. So 61 00:03:04,840 --> 00:03:05,320 Speaker 1: how do you do that? 62 00:03:06,720 --> 00:03:08,079 Speaker 2: Yeah, well, I think there's a couple of things. I 63 00:03:08,080 --> 00:03:09,800 Speaker 2: think the commers Commission has a big role to play 64 00:03:09,840 --> 00:03:12,280 Speaker 2: around the bad actors. I mean, look, I've worked for 65 00:03:12,320 --> 00:03:14,280 Speaker 2: the service spoard office, I've worked for a big lender, 66 00:03:14,360 --> 00:03:16,720 Speaker 2: and now I'm a startup lender. I don't want massively 67 00:03:16,760 --> 00:03:18,520 Speaker 2: high cost of compliants because I don't want to pass 68 00:03:18,520 --> 00:03:20,639 Speaker 2: them on to the my customers, and I just want 69 00:03:20,680 --> 00:03:22,440 Speaker 2: to lend money out that I think i'll get back house. 70 00:03:22,440 --> 00:03:24,640 Speaker 2: I'll be bankrupt, and so would an entire sector. So 71 00:03:24,680 --> 00:03:29,160 Speaker 2: I think the balance is around those most vulnerable consumers 72 00:03:29,560 --> 00:03:31,799 Speaker 2: and having the support they need, so having this sort 73 00:03:31,800 --> 00:03:34,880 Speaker 2: of financial mentors and communities, having that education be there, 74 00:03:35,120 --> 00:03:37,280 Speaker 2: and having an avenue to complain if things have gone wrong, 75 00:03:37,280 --> 00:03:41,600 Speaker 2: because you're right, we don't need to protect an astume 76 00:03:41,640 --> 00:03:44,920 Speaker 2: everybodies then, you know, have a low level. You know, 77 00:03:45,360 --> 00:03:48,200 Speaker 2: we just need to have it sensible and pragmatic and 78 00:03:48,520 --> 00:03:50,720 Speaker 2: loving the fact that we'll be able to get more 79 00:03:50,760 --> 00:03:53,200 Speaker 2: people into their first homes, making sure that we can 80 00:03:53,240 --> 00:03:55,560 Speaker 2: have innovation happen so that we can have new entrance 81 00:03:55,560 --> 00:03:58,000 Speaker 2: to this financial services market, because the cost of compliant 82 00:03:58,040 --> 00:04:01,000 Speaker 2: stops with innovating as well. Business. 83 00:04:01,720 --> 00:04:03,400 Speaker 1: I know a bloke who had to spend ten thousand 84 00:04:03,440 --> 00:04:05,520 Speaker 1: dollars on a leak in his roof. He didn't have 85 00:04:05,520 --> 00:04:07,360 Speaker 1: anyone to get a loan. Oh my goodness me. The 86 00:04:07,400 --> 00:04:09,440 Speaker 1: bank gave him the fourth degree. So it's good that 87 00:04:09,480 --> 00:04:12,560 Speaker 1: that goes because he had the wherewithal, he had the ability, 88 00:04:12,640 --> 00:04:14,720 Speaker 1: so this is a good thing. Hey, Sasha, thank you 89 00:04:14,760 --> 00:04:16,560 Speaker 1: so much for all the good work you do for people. 90 00:04:16,839 --> 00:04:19,320 Speaker 1: Sasha's the co founder and chief executive of social lender 91 00:04:19,720 --> 00:04:23,159 Speaker 1: Money sweet Spot. While we're talking about money quickly, the 92 00:04:23,160 --> 00:04:25,520 Speaker 1: Australian annual rate of inflation has risen to three point 93 00:04:25,600 --> 00:04:27,840 Speaker 1: eight percent, up from three point six percent at the 94 00:04:27,839 --> 00:04:30,200 Speaker 1: start of the year. Here in New Zealand, we're at 95 00:04:30,240 --> 00:04:32,520 Speaker 1: four percent in the twelve months to ourch twenty twenty four, 96 00:04:32,760 --> 00:04:35,120 Speaker 1: so actually things aren't that much better across the ditch 97 00:04:35,160 --> 00:04:40,720 Speaker 1: in terms of inflation. The RBA board over there will 98 00:04:40,760 --> 00:04:43,320 Speaker 1: now meet on Monday and Tuesday to discuss what to 99 00:04:43,320 --> 00:04:45,840 Speaker 1: do with the interest rates. Their cash rate target is 100 00:04:45,880 --> 00:04:48,839 Speaker 1: currently four point three five percent, and people are saying, well, 101 00:04:48,839 --> 00:04:51,520 Speaker 1: maybe they'll lift it to four point six percent. That 102 00:04:51,600 --> 00:04:54,680 Speaker 1: will be the fourteenth hike in this economic cycle. So 103 00:04:54,760 --> 00:04:57,440 Speaker 1: here's the rub. Then the pressure really goes on alban Easy, 104 00:04:57,680 --> 00:05:00,040 Speaker 1: who's starting to tank in the polls. He's starting to 105 00:05:00,080 --> 00:05:03,520 Speaker 1: get some bad economic information, and the speculation is that 106 00:05:03,600 --> 00:05:07,760 Speaker 1: he might start thinking about an early election. She's all 107 00:05:07,839 --> 00:05:12,679 Speaker 1: go across the ditch For more from Hither Duplessy Allen Drive. 108 00:05:12,839 --> 00:05:16,280 Speaker 1: Listen live to news talks it'd be from four pm weekdays, 109 00:05:16,360 --> 00:05:18,560 Speaker 1: or follow the podcast on iHeartRadio.