Interest free loan = heavy interest rates when behind repayment terms.
Therefore, people who issue interest free loans expect X% to be behind repayment terms. This is how they make their money.
That is in part the crux of this ASIC review, did BIG engage in predatory sales/lending practices?
FCC have quite clearly denied they had any involvement in the sales process. The multiple AFR reports state customers are often unaware that the videos had 'payment terms' as it was sold as free, and following the signup received little consultation with BIG.
Also feeds into the 'boiler room sales centre' picture that the AFR painted.
We will need to be patient to see the outcome of this.
