KELLY O’DWYER WRONG ON ASIC CASH CONVERTERS DEAL

Kelly O’Dwyer has once again shown she isn’t on top of her brief and is giving false hope to Australians who feel they have been ripped off through in store payday loans at Cash Converters.

The Minister has wrongly claimed that victims of dodgy loans in cash convertors stores can seek redress with ASIC despite a deal done by the corporate watchdog that precludes such action.

Cash Converters was found by ASIC to have breached its obligations under the National Consumer Credit Protection 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.

Minister O’Dwyer told Lateline last night that despite the ruling only covering people who had received loans online, customers with loans from in-store deals could still seek redress through ASIC.

“So for the people who have obviously gone into a Cash Converters, if they feel that there has been a problem in the way they have been dealt with, that there has been a breach of the responsible lending provisions, of course they can make the complaint to ASIC and there is absolutely nothing stopping ASIC from being able to conduct an investigation.” – Kelly O’Dwyer, Lateline, Tuesday 28 February, 2017.

This is simply not true.

Under the deal that ASIC did, online borrowers who received loans online without the proper capacity to repay them can get their money back, but ASIC cannot take further action on behalf of those who received loans in-store.

The deed of release signed by ASIC with Cash Converters is clear that ASIC cannot so much as investigate further breaches of the Act by Cash Converters, let alone take action on them.

In-store borrowers who took out loans prior to 4 November 2016 will have to fend for themselves and try their luck pursuing the matter through the Ombudsman.

The Minister should immediately correct the record and ensure that people, particularly those who have taken out loans with Cash Converters have the correct information from the Turnbull Government. 

WEDNESDAY, 1 MARCH 2017

Senator Katy Gallagher is Labor's Shadow Minister for Small Business and Financial Services. 


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