ASIC has warned consumers over an unlicensed loan company it says is offering consumers loans up to $20m.
The regulator has issued a warning about a company trading as Mike Morgan Loans, which ASIC said has sent unsolicited emails offering loans ranging from $10,000 to $20m at a rate of 3%. The company advertises itself as an Australian company, but appears to originate from South Africa, ASIC said. The watchdog also said the company advertised itself as a licensed credit provider.
ASIC said the company was operating through the website www.mmloans.com. The site gives both South African and UK addresses for the company.
ASIC commissioner Greg Tanzer urged caution over unsolicited offers of financial products.
"I would also urge consumers seeking loans or other credit products to avoid dealing with people or companies who are not licensed by ASIC. Australian credit licensees are subjected to stringent requirements under the national consumer credit legislation which are designed to protect consumers. This way you can be confident you are dealing with a legitimate credit service provider and avoid potentially significant financial losses," Tanzer said.