Book up lenders exploit communities: ASIC

SOME unscrupulous informal lenders in indigenous communities are gaining access to borrowers' accounts by keeping their debit cards and PINs.

UNSCRUPULOUS lenders in indigenous communities are being targeted by the corporate watchdog after a report found some hold debit cards and PINs as security and use them to drain customers' accounts.

AN Australian Securities and Investments Commission report released on Tuesday said book up, an informal type of credit that allows customers to pay later for goods or services, can hurt users even though many find the service useful or even necessary.