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ISCOVER
By: Jessica Darnbrough
ASIC has taken legal action against two finance brokers – Australian Lending Centre and Sydney Lending Centre – for falsifying loan documents.
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The corporate regulator alleges that both brokers contravened the ASIC Act, by falsely representing that various loan contracts were predominantly for business or investment purposes rather than for personal, household or domestic use.
Consumers with loans for personal, household or domestic purposes are protected by the Uniform Consumer Credit Code (UCCC), however, loans that are wholly or predominantly for business or investment purposes fall outside this legislation.
According to a statement by ASIC, Australian Lending Centre and Sydney Lending Centre engaged in unconscionable conduct in broking.
As such, the regulator is seeking declarations from the companies to say they contravened the Act. ASIC is also seeking compensation for two impacted borrowers.
This is not the first time Sydney Lending Centre has found itself in hot water. The finance broker was expelled from the MFAA back in May 2004.
