Bank probe to include payday lenders

Payday lenders and mortgage brokers will make up part of the remit of the royal commission into the banking and financial services sector.

This will take focus of the year-long inquiry beyond the four big banks, one of the criticisms levelled at the Turnbull government when the royal commission was first announced.

The letters of patent will be amended to reflect the addition of payday lenders and mortgage brokers, Fairfax Media reports.

This will enable the royal commissioner Judge Kenneth Hayne to investigate lenders who target low-income and vulnerable Australians who were not in a position to repay their loans.

Last year, Cash Converters was forced to pay a $1.35 million fine and refund $10.8 million to vulnerable Aussies following an investigation by the Australian Investments and Securities Commission.

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