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The Latest in Consumer Credit

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. BMW EU
  1. ASIC initially prosecuted BMW for some debt collection conduct =>   Fines of $306,000 + External Compliance Reviews.
  2. ECR found 98/100 contracts reviewed did not satisfy responsible lending obligations.
  3. ASIC decided not to wait for the next ECR report and sought EU.
Penalties
  • $14.6 million in remediation payments; and
  • $7.6 million in interest rate reductions...
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ASIC Applications must be accurate

When making any applications for licences from ASIC, financial service providers must provide accurate information, particularly about qualifications. Recently, ASIC has prosecuted an applicant for making false statements in an application. The documents containing false statements submitted by a financial adviser to ASIC included a forged educational certificate and a table referring to an educational qualification that has not been obtained. The court found each of the charges proven, and placed the adviser on a good behaviour bond for a 12-month period, without recording a conviction because the adviser has pleaded guilty and cooperated with ASIC. ASIC Deputy Chairman Peter Kell said, "The issuing of charges reflects the high degree of integrity expected of people who apply for and operate under a financial services licence. It also shows that ASIC wants reputable financial advisers, who play by the rules, to be able to operate on a level playing field." Under section 1308(2) of the...
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New Privacy Laws – Are you compliant?

  Australia's privacy laws have changed, with civil penalties of up to $340,000 against individuals and up to $1.7 million against corporations for non-compliance. Phone O'Shea Lawyers on (07) 3359 7967 to see if you comply....
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