ASIC sharpens deal with credit score and debt administration

The Australian Securities and Investments Fee (ASIC) is warning credit score suppliers and debt administration companies – together with these geared for the automotive business – that sturdy, focused motion is anticipated in coming months in opposition to predatory lending, high-cost credit score and misconduct impacting customers 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 court docket proceedings in opposition to some credit score suppliers within the first quarter of 2023.

ASIC continues to sharpen its deal with credit score suppliers and debt administration companies, together with those that are unlicensed or ‘fringe’ entities, says deputy chair Sarah Court docket.

“Credit score suppliers and debt administration companies that look to benefit from susceptible customers are in our sights and we anticipate additional motion within the coming months in opposition to operators on this space.

“ASIC’s enforcement motion in opposition to predatory lending shouldn’t be restricted to court docket motion,” she warns.

“We are going to proceed to make use of our full suite of powers to guard customers seeking to entry credit score. This may very well be through a cease order for breaching the monetary product design and distribution necessities or may very well be warning the corporate instantly through our monitoring and surveillance applications.”

It has additionally launched its first court docket proceedings in relation to alleged greenwashing conduct and has issued greater than $140,000 in infringement notices previously six months in response to considerations about alleged greenwashing.

“The enforcement outcomes of the final quarter mirror that we’ll not hesitate to take swift motion the place we see misconduct that harms customers 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 concerning obligations and to ship improved outcomes for customers.