ASIC takes payday lenders to task

by Adam Smith04 Jul 2014
ASIC has taken aim at two payday lenders, alleging they have shirked responsible lending obligations.

The watchdog has begun civil proceedings in Federal Court against Gold Coast-based Teleloans Pty Ltd and Finance & Loans Direct Pty Ltd.

ASIC said the companies have claimed they do not have to comply with certain NCCP consumer protection laws, because their loans are exempt under a short-term credit exemption. But the regulator has argued that the companies do not fall under the exemption, and must comply with all aspects of the NCCP including responsible lending obligations relating to payday loans and caps on fees and charges.

"These proceedings will ensure that payday lenders do not deliberately structure their businesses to circumvent laws that protect consumers. This is particularly important as the consumers who access these small amount loans can be financially vulnerable," ASIC deputy chairman Peter Kell said.


  • by wayne 4/07/2014 9:55:37 AM

    What about the robbing Private Lenders
    How long will they be flying under the radar?

  • by Denise Brailey BFCSA (Inc) 4/07/2014 11:05:18 AM

    ASIC is fiddling around the edges again. They know its the Major Lenders that were behaving as pensioner payday lenders. Evidence of widespread problems handed in to the Senate. The point is the issue will not go away as these older people need help. If its only a small matter why did banks not pay people out from petty cash? Problem its it was widespread by Bank execs for many years and we have the proof. What does the industry do about that problem?

  • by Regional Broker 4/07/2014 11:36:49 AM

    Just has a private lender promoter email out promotional material for "private Loans" short term , "Non Code and Code" available " , will ASIC be look at the "code" loans in this space as well >