ASIC Actions in Consumer Credit
Paccioco V ANZ (Hight Court of Australia)
Maurice Blackburn’s multimillion dollar class action against the ANZ which argued that late fees were “penalties” at common law (as well as breaching other statutory provisions) and, therefore, unenforceable.
Cash Converters EU
The relevant contracts were those where the lender had “rebutted the presumption of hardship” which arises when the consumer has 2 or more SACC loans in the previous 90 days.
ASIC alleged that Cash Converters had failed to do so and had relied too much on benchmarks rather than individual assessments of consumer expenses.
- ASIC initially prosecuted BMW for some debt collection conduct => Fines of $306,000 + External Compliance Reviews.
- ECR found 98/100 contracts reviewed did not satisfy responsible lending obligations.
- ASIC decided not to wait for the next ECR report and sought EU.
- $14.6 million in remediation payments; and
- $7.6 million in interest rate reductions...