Payday lenders target poorer suburbs

Payday lenders are targeting clientele in poorer suburbs across Victoria, according to a University of Melbourne study.

In an analysis of 123 payday lenders across Victoria, researchers found that low socioeconomic suburbs such as Preston, Dandenong and Frankston had five or more payday lending stores. Overall, about 60% and 80% of payday lending stores are located in areas of relative disadvantage.

Lead researcher Professor Ian Ramsay warned that payday loans can result in further debt and entrench poverty in these areas.

Read more at Melbourne University