Late last year the Australian Securities and Investment Commission (ASIC) accepted an enforceable undertaking from payday lender Cash Converters that would see it pay over $12M in refunds and penalties for breaches of the National Consumer Credit Protection Act 2009, including its responsible lending obligations.
In a media release in February 2017 the company announced that in the six months leading up to 31 December 2016, profits from its financial services activities were down approximately 20% on the previous year.
Cash Converters stated in the release that, “[t]he reduction in lending volumes from April 2016 onwards have, as expected been the main factors in the decline in revenue and profits across all financial services products and channels.”
You can read more about the ASIC investigation here.
If you believe you may have been provided with a loan that was not suitable for you in your circumstances, please contact the Consumer Credit Legal Service (WA) Inc. Telephone Advice Line on (08) 9221 7066 for a free confidential discussion.