Imperial interest rates charged by Cash King

Cash King, a non-conforming lender, has been found to charge effective interest rates of 350 per cent, or more than seven times the interest rate under New South Wales consumer law, and more than 40 times the rate of interest on a standard home loan. Cash King advertised “quick and easy mortgages” to people who “have difficulty documenting their financial position” or who “are going through a rough patch and have one or more defaults on their credit file”. Last year the Federal Court found that Cash King engaged in misleading and deceptive conduct on 200 occasions; taken secret commission; charged brokerage and legal fees when no broker was involved and no solicitor was used; had advertised “no upfront fees” and then charged upfront fees; and had boosted interest rates to “default” levels when there was no default on the loan.

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