Labor today welcomed the ASIC decision obliging Cash Converters to pay back over $10 million to loan consumers for failing to comply with Labor’s consumer credit legislation.
The National Consumer Credit Protection Act 2009 was enacted by the previous Labor Government in response to growing concerns about improper behaviour by payday lenders.
Cash Converters was found by ASIC to have breached its obligations under the Act by failing to properly assess the particular circumstances of some loan customers, thereby granting loans to some customers who may not have had capacity to pay them back.
“Representing the interests of vulnerable consumers in our community is important to Labor,” Mr Hammond said.
“Payday lenders must not prey on vulnerable consumers,” he said.
“We should never forget that misconduct like this has a real human impact, and can cause very serious personal hardship. The number of examples that keep surfacing is highly concerning,” Ms Gallagher said.
Labor will continue to argue the case for a Royal Commission into Australia’s banking and financial services sector. Only a Royal Commission will allow misconduct and its impact on victims to be fully brought to light. Only a Royal Commission will get to the bottom of the systems and culture that allow this sort of poor practice in the financial services sector to occur.
ASIC’s media release is available at http://asic.gov.au/about-asic/media-centre/find-a-media-release/2016-releases/16-380mr-cash-converters-to-pay-over-12m-following-asic-probe/.
WEDNESDAY, 9 NOVEMBER 2016