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ISCOVER
James Mitchell
ASIC has issued its first credit infringement notice to a Sydney-based mortgage broker.
The infringement notice carries a penalty of $27,500 and is the first to be issued since ASIC took over regulation of Consumer Credit on 1 July 2010.
ASIC alleges the company, which has not been named, continued to advertise it provided credit services on its website, despite being notified that it was breaching the NCCP.
“...The issuing of an infringement notice should send a clear message to traders that we are prepared to take action for the alleged breach,” ASIC Chairman Greg Medcraft said.
“While ASIC has generally been pleased with the industry’s efforts to comply with the new consumer credit legislation, the infringement notice regime provides a new mechanism for ASIC to act against the small number of traders that don’t ‘obey the rules’,” he said.
The company was not registered, authorised or licensed to provide credit services, and has 28 days from when the infringement notice is served to pay the penalty.
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