The Australian Securities and Investments Fee (ASIC) is warning credit score suppliers and debt administration corporations – together with these geared for the automotive business – that robust, focused motion is predicted in coming months towards predatory lending, high-cost credit score and misconduct impacting shoppers experiencing monetary problem.
The warning comes after ASIC’s enforcement and regulatory replace highlighted greater than $30 million in civil penalties secured by ASIC, in addition to the graduation and finalisation of courtroom proceedings towards some credit score suppliers within the first quarter of 2023.
ASIC continues to sharpen its give attention to credit score suppliers and debt administration corporations, together with those that are unlicensed or ‘fringe’ entities, says deputy chair Sarah Court docket.
“Credit score suppliers and debt administration corporations that look to make the most of susceptible shoppers are in our sights and we count on additional motion within the coming months towards operators on this space.
“ASIC’s enforcement motion towards predatory lending will not be restricted to courtroom motion,” she warns.
“We are going to proceed to make use of our full suite of powers to guard shoppers seeking to entry credit score. This may very well be by way of a cease order for breaching the monetary product design and distribution necessities or may very well be warning the corporate straight by way of our monitoring and surveillance packages.”
It has additionally launched its first courtroom proceedings in relation to alleged greenwashing conduct and has issued greater than $140,000 in infringement notices prior to now six months in response to considerations about alleged greenwashing.
“The enforcement outcomes of the final quarter replicate that we’ll not hesitate to take swift motion the place we see misconduct that harms shoppers or undermines market integrity.
“The place acceptable, we may also take a look at new areas of the regulation, as we’re doing with our greenwashing and whistle-blower circumstances,” says Court docket.
ASIC has additionally supplied steerage to the business to assist with higher compliance relating to obligations and to ship improved outcomes for shoppers.
