Recently, ASIC has issued the following media releases:

Warning to borrowers about lending scams

ASIC has issued a repeat warning to Australians about scammers asking consumers to make upfront payments for loans that are never provided. CCLSWA has seen a couple of instances now where credit providers have asked for loan fees up front, such as fees for insurance, before the has been paid out. Once the fees have been paid, no loan has been provided and has resulted in consumers being scammed. In these cases, the scammers have taken on the identity of real businesses. In both cases we lodged complaints with regulators.

Please click here for ASIC’s media release.

You can also read an earlier warning issued by CCLSWA here

Esanda compensates consumers for conduct by finance broker

Finance brokers of Get Approved Finance have, over the past couple years, been approving loans with Esanda for consumers with poor credit histories, which would not have met responsible lending criteria. They have done so by arranging friends or relatives of consumers to sign loan documents as a borrower whilst leading these third parties to believe they were only signing a guarantee.

Other unfair conduct that Get Approved Finance has been pulled up for, has been supplying add-on products without a consumer’s knowledge or consent. It is very important that you always check and read documents thoroughly before signing.

Esanda is a division of Australia and New Zealand Banking Group Ltd (ANZ).

At the time of the unfair conduct, Get Approved Finance was the trading name, and operated under the Australian credit licence of, West Australian-based finance broker, Jeremy (WA) Pty Ltd.

Please click here for ASIC’s media release.

ASIC imposes licence conditions on car financier

Car financier, Carboodle, has been put on notice that it has insufficient procedure for ensuring compliance with responsible lending criteria, as set out in the National Consumer Credit Protection Act 2010 (Cth). Green Light Auto Group Pty Ltd which trades as Carboodle offered consumer leases of goods to consumers who were unable to afford the lease terms. Carboodle is currently under ASIC’s surveillance to ensure that proper procedure is put in place.

In the past, similar consumer lease cases were brought to the appropriate ombudsman and compensation to the consumer was awarded. You can read CCLSWA’s previous news item here.

Please click here for the link to ASIC’s media release.

If you have been affected by any of the issues in these media releases, please contact CCLSWA on (08) 9221 7066.


Michael Duncan