Broker cops $20,000 in ASIC penalties

by 05 Feb 2014
A finance broker has been ordered to pay over $20,000 in penalties for misleading representations.

Finance broker Jeremy (WA) Pty Ltd (the company) has paid $20,400 in penalties in compliance with two infringement notices issued by ASIC. Each infringement notice imposed a penalty of $10,200.

The marketing representations, which in effect offered 'guaranteed car finance' to consumers, were published on websites operated by the company at and and using the Google Adwords service which linked to the company's website at 

ASIC was concerned the representations were false or misleading under the national consumer law because an unconditional guarantee that finance can be provided is inconsistent with responsible lending laws. 

Responsible lending prohibits lenders from entering into unsuitable credit contracts with consumers, including where a consumer would not have reasonable capacity to meet loan repayments. This means that loans cannot be 'guaranteed' in all circumstances, especially if they would result in a consumer experiencing financial difficulties.

ASIC Deputy Chairman Peter Kell said, "ASIC will continue to monitor both traditional and non-traditional media to ensure lenders and finance brokers are complying with the law in their marketing to consumers. We will take action where we identify ads that may mislead consumers".

The payment of an infringement notice is not an admission of a contravention of the ASIC Act consumer protection provisions. ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.


  • by troy 5/02/2014 2:35:30 PM

    I was recently in WA over christmas and all I heard on the radios was car finance ads!! I've never heard this anywhere else with such vigor!!

  • by John Smith 5/02/2014 3:17:20 PM

    Bet they made far more than 20K in commissions. Its like the rich guys who used to park in the city, in non parking areas. The occasional fines they received was like paying change out of their pocket. It was not until their license was threatened, that they stopped before they got fined.

  • by Broker 5/02/2014 5:50:58 PM

    I wonder what industry will be next, surely they're just about done with Finance.

    They could have a field day with Utilities , Telcos etc , but that means taking on the big jobs!