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
ASIC has banned a former AFSL director after he failed to adequately address fees-for-no-service conduct by one of his firm’s representatives.
The Financial Advice Association Australia has appointed two new board members following two weeks of voting, as well as one re-elected member.
Advice licensee Bombora has introduced a board of six financial advisers from its national network to ensure industry voices are heard collectively on future decisions.
Technology firm Iress and investment manager Challenger have formed a strategic partnership to launch an adviser solution to better serve their retiring clients.
