Payday Loans are defined under regulation. They differ by definition under regulation of small amounts and need to be repaid a short period and referred to as SACC (small amount credit contracts). Other lenders move into MACC and beyond which have minimum terms of 12 months.
Forget the definitions though, what needs to be considered is whether the lender is being responsible, not taking advantage of an individuals circumstance by charging excessive fees (defined in regulation) and that the individual can in fact afford to repay the loan without undue hardship. Many lenders / organisations fall into the same bucket, look at the Banking Royal Commission for example. Why does this lapse in ethics occur?
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