ASIC has cancelled the Australian credit licence of Net Finance and banned its director Graham Tandy from the credit industry for 10 years for failing to provide credit activities honestly. A second employee responsible for the day-to-day operations of Net Finance, John Murphy, has also been banned for eight years.
An ASIC investigation found Net Finance induced a consumer to make a false business declaration when applying for a loan by requesting a handwritten note falsely setting out that the loan was for business purposes.
The investigation also found that the company did not make relevant inquiries and assessments, and assisted a consumer to obtain a loan which was unsuitable. The consumer was forced to sell his home when he could not meet his obligations under the loan.
Deputy Chairman Peter Kell said, “Individuals in trusted positions must ensure they understand and adhere to their obligations. Those who fail in this regard will be removed from the industry.”