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ISCOVER
Jessica Darnbrough
Aggregation group Pump Financial has had its Australian Credit Licence cancelled by the corporate watchdog after it was found to have breached the National Consumer Credit Protection Act.
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According to a statement by ASIC, the Queensland-based aggregator and mortgage broker does not hold membership of an approved external dispute resolution scheme.
Under the terms of the NCCP, credit licensees are required to be a member of an ASIC approved EDR scheme.
On 18 January 2012, Pump Financial Pty Limited's EDR membership was cancelled by the Credit Ombudsman Service Limited, one of two EDR schemes approved by ASIC.
ASIC commissioner, Greg Tanzer, said it is integral that all licensees are members of an approved EDR scheme as they provide consumers with alternatives to legal proceedings in respect of resolving complaints with their credit service providers.
“The importance of EDR schemes means that ASIC will have no hesitation in cancelling the credit licence of those who do not hold membership in either of the ASIC approved schemes,” he said.
Pump Financial Pty Limited has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC's decision.
