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.
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