ASIC sues debt collection company for violating consumer credit protection laws

0

ASIC has commenced civil sanction proceedings in Federal Court against Ultimate Credit Management Pty Ltd.

ASIC alleges that between May 10, 2019 and December 11, 2019, Ultimate Credit Management initiated proceedings against 24 borrowers in New South Wales even though the borrowers lived in other states.

National consumer credit protection legislation requires credit providers to initiate debt collection proceedings in the state or territory where the borrower lives.

The original loan amounts that Ultimate Credit Management sought to recover in these proceedings ranged from $ 400 to $ 2,850.72. Most of these loans were expensive, attracting interest of 48% per annum.

ASIC is concerned that these alleged failures have caused material harm to consumers. Starting a proceeding outside a borrower’s home state makes it much more difficult for borrowers to defend themselves in the proceeding, especially if they wish to appear in person.

The Financial Ombudsman Service and subsequently the Australian Financial Complaints Authority (AFCA) informed Ultimate Credit Management as early as May 17, 2018 that bringing proceedings against borrowers outside the borrower’s home state was a breach of obligations imposed on credit license holders. However, ASIC alleges that Ultimate Credit Management continued to initiate such proceedings.

ASIC alleges that the conduct of Ultimate Credit Management violated its obligation as a credit licensee to do whatever is necessary to ensure that it engages in credit activities in an efficient, honest and efficient manner. fair.

ASIC is seeking returns and financial penalties against Ultimate Credit Management.

The date of the first case management hearing has not yet been set by the Court.

/ Public distribution. This material is from the original organization / authors and may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author (s). here.


Source link

Share.

About Author

Leave A Reply