ASIC acts against non-conforming lender
By
Ben Abbott
|
2/08/2010 5:50:00 AM
|
1
comments
The newly enfranchised credit regulator ASIC has moved to stop a non-conforming lender, PR Finance Group, from advertising 'interest free' finance for the purchase of motor vehicles.
Sold through its Motor Finance Wizard business, the loans were variously sold as 'interest free' or 'guaranteed interest free', and stated finance was available to consumers who had credit problems or poor credit ratings and who were unable to obtain finance from other financial institutions.
In 2007, ASIC raised concerns with PR Finance Group Limited (PRFG), after considering the possibility the advertisements may amount to conduct that was potentially misleading and deceptive and that there may have been instances of consumers being provided with unaffordable credit.
As a result, Motor Finance Wizard was obliged to cease publishing the interest free statements, desist from offering interest free finance, and review its credit assessment criteria.
ASIC’s concerns related to Motor Finance Wizard's conduct between 2006 and 2008, when ASIC's jurisdiction was limited to consumer protection provisions in the Australian Securities and Investments Commision Act 2001. ASIC's powers expanded to consumer credit regulation on 1 July 2010.
Related stories:
Housing market in ASIC's sights?
Latest Comments
Total:
1
comment(s)
Pardon Me Broker on
02 Aug 2010 12:53 PM
This is really good news, legimate brokers have been playing by the rules for years and putting up with this type of deciptive advertising . It is good to see ASIC using to authority to get these types of lenders into line.