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The Australian Securities and Investments Commission recently released a report into the pay lending industry which reviewed 13 payday lenders who account for 75% of the payday lending market.
The report findings were focused on compliance risks in the industry around responsible lending obligations. If the industry does not improve, ASIC views enforcement action against the industry as inevitable. ASIC has already successfully prosecuted The Cash Store and Assistive Finance Australia with over $19 million penalties handed down by the court.
Other areas of misconduct in the industry include implementing business models that are designed to circumvent the law, unfair fees and misleading advertising.
This may present lending opportunities to some of our clients in the Mutual space / Not For Profit Space who are genuinely focused on the needs of their members / clients rather than profit.
You can read the full ASIC media release here.