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ASIC has cancelled the credit licence of a car finance broker for “failing to comply with numerous responsible lending obligations”.
Rosa Villella is the sole director of Rent & Buy Automotive and All Loans R Us, which are both based in the Melbourne suburb of Dandenong.
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All Loans R Us provided loans under Ms Villella's credit licence to purchasers of cars from Rent & Buy Automotive, according to ASIC.
“ASIC found there was systemic failure on the part of Ms Villella and All Loans R Us to comply with their obligations and there were clear deficiencies in their practices and processes.”
The regulator found that All Loans R Us entered into credit contracts “without making reasonable inquiries about the consumer's requirements and objectives [and] without making reasonable inquiries about the consumer's financial situation”.
All Loans R Us also provided credit contracts that “did not contain the annual percentage rates and method of calculation of the interest charges payable under the credit contract”.
ASIC said Ms Villella also failed to provide ASIC with enough information about her credit activities and failed to keep accurate records about the transactions and financial position of her credit business.
She also failed to undertake continuing professional development activities, according to ASIC.
The breaches occurred between May 2011 and October 2013.
ASIC deputy chairman Peter Kell said credit licensees must act with integrity and in the customer’s best interest at all times.
“ASIC takes a licensee's failure to perform all required duties, including the necessary credit assessment and verifications, very seriously. Licensees who breach these requirements will be held to account,” he said.
Ms Villella has the right of appeal to the Administrative Appeals Tribunal.
[Related: ASIC announces review into self-reporting of rule breaches]
