ASIC has cancelled the Australian credit licence of Cairns-based second hand car dealer, William Barry Young.
After reviewing Young's dealings with Indigenous customers, ASIC found he was no longer a member of an ASIC approved External Dispute Resolution (EDR) scheme and was therefore ineligible to hold a credit licence.
Young is now unable to offer loans to customers, collect loans entered into with customers or organise loans for another lender.
ASIC deputy chair Peter Kell
said it was imperative for credit licensees to hold EDR scheme membership: "Mr Young's customers were mainly vulnerable, Indigenous consumers and it was essential that they had access to the free dispute resolution services of the Ombudsman."
Young has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
Young had not paid his membership fees to the Credit and Investments Ombudsman, who in turn cancelled his membership on 28 March 2017.
This outcome is the result of work by ASIC's Indigenous Outreach Program (IOP), a dedicated team working on issues faced by Indigenous consumers, staffed by lawyers and analysts, the majority of whom are Indigenous.