Broker shells out $98,000
The Australian Securities and Investments Commission (ASIC) has acknowledged a recent $98,000 payment made by a Queensland-based financial broker to support indigenous communities in Cairns.
United Financial Services Queensland (UFSQ) made the payment to Cairns’ Indigenous Consumer Assistance Network as part of a package of solutions to resolve concerns raised by ASIC in relation to the financial broker business.
ASIC alleged that UFSQ was involved in the arrangement of approximately 200 personal loans for borrowers in far north Queensland. The borrowers, who were dependent on Centrelink payments, were unable to meet repayments on the loans arranged by UFSQ.
According to ASIC, a majority of the loans had been arranged through banks between 2003 and 2005 and were used by borrowers to purchase second-hand vehicles.
Along with the $98,000 payment, UFSQ has also acted in response to ASIC’s enquiries to remove staff responsible for the conduct, and has implemented more rigorous eligibility checks for low-income consumers, tightened up information disclosure standards and upgraded its internal audits of staff.
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