Payday lender cops $42k fine
The corporate regulator has issued a $42,500 penalty on payday lender Abaz Pty Ltd (Abaz) for failing to get the necessary account statements from consumers.
It came after the Australian Securities and Investments Commission (ASIC) slapped the lender with an infringement notice after the lender failed to adhere to new responsible lending rules.
In March 2013, new laws came into effect which required lenders to look at consumers' bank statements from authorised deposit-taking institutions like banks and credit unions that cover at least the last 90 days where income payable to the consumer is credited.
Deputy Chairman Peter Kell said the new laws aim to stop payday lenders from approving loans where the consumer cannot meet their obligations and to prevent their debts from getting out of control.
ASIC said Abaz has updated its policies to comply with the new law, and has appointed an independent compliance consultant to assess the procedures.
AUTHOR
Malavika Santhebennur
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
