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ISCOVER
Staff Reporter
ASIC has accepted an enforceable undertaking from Perth based Key Credit.
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ASIC accepted the enforceable undertaking (EU) from owner and operator Graham Rendell following concerns there may have been underlying weaknesses in Key Credit's compliance processes.
Key Credit has also paid a penalty of $5,500 after ASIC issued five infringement notices under the National Consumer Credit Protection Regulations 2010.
According to a statement from ASIC, the industry watchdog had concerns that Key Credit had not properly implemented the various legislative changes.
ASIC believed Key Credit borrowers may have been misled in relation to Key Credit's ability to repossess essential household property listed as security for their loans.
Under the EU, Key Credit has agreed: to contact each affected borrower informing them that the mortgages over their essential household property are void and not enforceable, and that if borrowers default in their loan repayments, Key Credit will not and cannot take possession of that essential household property.
