Tuesday, May 30, 2017 - Posted by Michael McCulloch
Recently Motor Finance Wizard has signed an enforceable undertaking to the Australian Securities & Investments Commission ("ASIC") to implement a raft of changes after an ASIC investigation found that they had failed to meet responsible lending obligations.
The investigation by ASIC found that Motor Finance Wizard had:
- Failed to make reasonable enquiries about a consumers income and expenses.
- Failed to make reasonable steps to verify a consumers expenses.
ASIC accepted the enforceable undertaking which includes:
- Over $11 million in refunds and write-offs to 1,511 customers who entered into a consumer lease or loan between 1 July 2010 and 16 July 2014
- $100,000 payment to a community benefit program funding consumer initiatives
- Re-assessing each consumers capacity to make payments under the consumer lease or loan under a remediation program overseen by an independent auditor who will report to ASIC
- Giving affected consumers the option to remain in or terminate the consumer lease or loan
- Allowing consumers to keep the car at the end of the lease term, if they elect to keep the lease
- Engaging an independent expert to review its current business operations and compliance with consumer credit regime and report to ASIC
ASIC Deputy Chair, Peter Kell, said, "Our responsible lending rules are clear: Licensees must make proper inquiries into each customer's capacity to repay a consumer lease or loan. Otherwise consumers could up signing up for a loan or lease they simply cannot afford."
Motor Finance Wizard customers who believe that they may be impacted by this recent ruling can contact them on 13 22 75.