THE countryвЂ™s business watchdog is using appropriate action against two Gold Coast payday loan providers, accusing them of avoiding accountable lending responsibilities when they charged clients costs up to 160 percent associated with loan that is original.
The appropriate action will be a test situation for the Australian Securities and Investment Commission (ASIC), which would like to draw a line into the sand under short-term credit providers attempting to dodge consumer security legislation.
ASIC has launched civil proceedings in the Federal Court against Gold Coast-based Teleloans Pty Ltd and Finance & Loans Direct Pty Ltd after every stated it absolutely was exempt from different credit legislation.
The move is component of a crackdown by ASIC on payday loan providers – ASIC aims to create them into line with legislation concerning accountable lending and overcome avoidance of customer security rules and deceptive advertising. Read more ›