$7500: The price of crossing ASIC

by Mackenzie McCarty06 Sep 2012

A Sydney director has copped the first civil penalty under the National Credit Act, in a verdict being trumpeted by ASIC as an example of its tenacity in enforcing the new credit laws.

ASIC said the Federal Court in Sydney ordered Nathan Elali, of South Hurstville, to pay a penalty of $7500 after his former company was found to have advertised that it could provide credit despite being unlicensed.

Elali was the sole director of a company formerly known as EasyChoice Home Loans. The company advertised for more than a year it could provide home and investment property loans, while not having an ACL.

Despite repeated warnings by ASIC to remove the advertising, ASIC says that the company did not respond. The material was removed only after ASIC had commenced court action.

ASIC Commissioner Peter Kell said where ASIC identifies a possible breach of the consumer credit laws, it will first often require the company to take action to ensure the contravention ceases.

"If the company fails to comply, we are prepared to commence civil penalty proceedings as part of our approach to enforcement," Kell said.


  • by Nicole 6/09/2012 11:54:48 AM

    Oh Please...This shows how Pathetic ASIC is. This was clearly a breach and the company should have been shut down after the first week of no action. $75,000 would have shown some teeth, not a poultry $7,500!!!

  • by Keithy of the West 6/09/2012 12:05:00 PM

    Is this something for ASIC to crow about?. A fine of $7,500 for someone trading wihtout a licence??. Should have had another diget on the fine

  • by Sarah 6/09/2012 12:07:29 PM

    I agree. ASIC is useless.