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Capital Finance Fails to Issue Default Notices

Tuesday, April 19, 2016 - Posted by Philip Harvey

Capital Finance voluntarily reported a breach of the National Consumer Credit Protection Act in failing to issue Default Notices before repossessing motor vehicles and the failing to issue the relevant notices after repossession.

Upon investigation by ASIC, it was found that in in a 4 month period from March 2015 to June 2015 Capital Finance had:

  • In 55 instances, not issued Default Notices prior to repossessing a motor vehicle secured under the Contract; and
  • In 3 instances failed to issue the mandatory Notices after repossession.

58 infringement notices were issued which totalled $493,000 for breaches of the Code.

It is important to have robust processes and procedures in place that guard against this. It would be interesting to know what the root cause of this issue was (eg change of staff, implementation of a new system).

Source: Daily Telegragh


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