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ASIC has cancelled the credit licence of Net Finance and issued lengthy bans to two of its staff.
The regulator announced today that it had cancelled the Australian credit licence of Net Finance, which is based in Slacks Creek, Brisbane.
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Graham Tandy, the director, has been banned from the credit industry for 10 years, according to ASIC.
John Murphy, a second employee, who was responsible for the day-to-day operations of Net Finance, has been banned for eight years, the regulator added.
ASIC stated that an investigation had found Net Finance failed to provide credit activities honestly, efficiently and fairly.
"Net Finance induced a consumer to make a false business declaration when applying for a loan by requesting a handwritten note falsely setting out that the loan was for business purposes," ASIC said.
"ASIC's investigation found Net Finance did not make relevant enquiries and assessments, and assisted a consumer obtain a loan which was unsuitable.
"The consumer was forced to sell his home when he could not meet his obligations under the loan."
ASIC said Net Finance also failed to provide credit guides, credit quotes and credit proposal disclosure documents to its clients, all of which are required under the law.
"Mr Tandy and Mr Murphy were both found to be involved in the breaches by Net Finance and not [to] be fit and proper persons to engage in credit activities," the regulator said.
[Related: ASIC wraps more red tape around brokers]
