It was reported in November 2015 in the press that Cash Converters, a public company listed on the Australian Stock Exchange was accused of exploiting and trapping vulnerable low-income customers in a cycle of debt by charging extortionate interest rates up to 633% per annum.
Identify ethical issues surrounding Cash Converters’ alleged practices and discuss the role of professional accountants in this problem via ethical standards for accountants. How would you deal with this situation if you were an accountant dealing with loans to customers at Cash Converters?