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ASIC cancels credit licence and bans director for 10 years

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Australian Broker | 26 Nov 2014, 04:53 AM Agree 0
ASIC has cancelled the credit licence of Net Finance and banned its director for 10 years for failing to provide credit activities honestly
  • Steve McClure | 26 Nov 2014, 09:41 AM Agree 0
    Time & again, I hear brokers say in regards to applications & declarations "the client signed it, so it's their problem". That might have been the case pre-NCCP, but certainly not now. That and the requirement to ensure a suitable product are the pre-eminent obligations of lenders & brokers.

    Which leads me to ask, what examination of the lender's processes took place in this matter?
  • QEDRisk | 26 Nov 2014, 10:35 AM Agree 0
    Guys the NCCP Act/Regs still allow for these declarations but they are a waste of time and not worth the paper they're signed on. The Act effectively says that the declaration will be void if you don't do the homework to ensure that the purpose of the credit really is non-consumer. Therefore, what's the use of getting the declaration?!

    And while we're at it - I did come across someone this week that still didn't understand that a loan to invest in a resi property for renting out is a consumer loan and not a business loan.
  • Maria Rigoni | 27 Nov 2014, 12:59 AM Agree 0
    So let's examine why Business Purpose loans have no protection.
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