Some lenders have been found to charge over the 48 per cent cap on interest rates.
One lender has been found to offer an
interest rate of 780 per cent.
The Cash Store in Sydney has been charging the rate and there are many others who are not complying with the 48 per cent cap in NSW, the Daily Telegraph reports.
Companies including Cash Converters and AMX money are exploiting a legal loophole by offering customers the deals via brokerage fees, but it was announced earlier this week that this is set to end next month.
But Katherine Lane, a principal solicitor for Consumer Credit Legal Centre, said the federal government has stated it does not want a cap because rivalry will fix the problems.
"That's absolutely rubbish. The only competition that's out there is to see how much can be charged," Ms Lane added.
The government is set to take over how consumer
Aussie credit is regulated, 12 months after the cap has been in place.
Moreover, this news comes after St George bank - which offers a range of savings accounts - discounted the interest rate on its Advantage Package loans.
By Emma North
