Consumer groups are calling on parliament to pass payday loan changes that will protect vulnerable people from spiralling deep into debt.
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Payday lenders offer consumers fast cash but typically charge super-high fees and interest.
The Consumer Action Law Centre and CHOICE will appear at a parliamentary committee on Friday, calling on the Senate to back the reforms.
The proposed legislation, which has already passed the lower house, includes a 10 per cent cap on the amount of a person's income that can be taken up in loan repayments.
The previous cap was 20 per cent and only applied to people on social security payments.
Assistant treasurer Stephen Jones said the reforms are long overdue, with the former coalition government committing to regulate the products in 2016.
However, the changes failed to get off the ground.
"We want to get the balance between protecting vulnerable consumers and allowing credit to be provided in a safe environment," Mr Jones told AAP.
"We are cleaning up what we think are unsafe or unconscionable practices."
Consumer Action's Tania Clarke said in the years since the reforms were first floated, hundreds of clients had experienced financial distress due to unregulated credit products.
"The fees and charges are astronomical," Ms Clarke said.
Australian Associated Press
