Unscrupulous companies will no longer be able to charge struggling Australians 880 per cent interest on consumer leases for goods such as fridges and dryers under new "small amount credit contract" laws.

In its response to the small amount credit contract review, which focused on the payday lending and consumer leasing (rent-to-buy) sectors, the federal government said it accepted 21 of the 24 recommendations, in part or in full.

"Implementation of these recommendations will ensure that vulnerable consumers are afforded appropriate levels of consumer protection while continuing to access SACCs and leases," said Kelly O'Dwyer, the federal Minister for Revenue and Financial Services.

Last year's inquiry referred to the fact the most financially vulnerable consumers were paying the highest lease prices for basic household goods.