Sydney-based finance broking firm Nova Home Loans has had its credit licence cancelled by regulator ASIC after a period of not being a dispute resolution scheme member.
Nova, which was expelled from membership of the Financial Ombudsman Service in June 2011, failed to obtain membership from the other approved scheme, the Credit Ombudsman Service.
When ASIC became aware of this, the regulator said it took steps to cancel Nova's credit licence.
"Membership of an EDR scheme is an important requirement for Australian credit licensees, and as the consumer credit regulator ASIC will not hesitate to act against those who fail to comply with their responsibilities’, ASIC commissioner Peter Kell said following the licence cancellation.
Nova Home Loans is a Sydney-based finance brokerage, that purports to service clients throughout Australia via a network of "fully qualified and trained home loan agents".
However, following the ASIC announcement yesterday the business' website has been inaccessible to the public. The business could not be contacted for comment.
ASIC said that in December 2010, Nova was granted a licence to engage in credit activities relating to credit contracts, consumer leases, related mortgages and guarantees, and credit services.
However, its period without an EDR scheme membership entitled ASIC to cancel its licence under the NCCP regime, which requires all credit licencees to be EDR scheme members.
Nova has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
FOS would not comment on the reasons for Nova Home Loans' expulsion. Businesses can be expelled from FOS for a number of reasons, including failing to comply with its constitution, failing to comply with a FOS decision, or failing to pay monies owed to the dispute resolution scheme.
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