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ISCOVER
Jessica Darnbrough
The industry watchdog has cancelled the credit Licence of a Nova Home Loans after the company failed to become a member of an EDR scheme.
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According to a statement by the Australian Securities and Investment Commission, Nova was expelled from membership of the Financial Ombudsman Service Limited, one of the two external dispute resolution (EDR) schemes approved by ASIC, in June 2011.
Nova then failed to obtain membership of the other approved EDR scheme, Credit Ombudsman Service Limited, and when ASIC became aware of this, it took steps to cancel Nova’s credit licence.
“Membership of an EDR scheme is an important requirement for Australian credit licensees, and as the consumer credit regulator ASIC will not hesitate to act against those who fail to comply with their responsibilities,” ASIC Commissioner Peter Kell said.
As such, Nova Home Loans will no longer be able to engage in credit activities relating to credit contracts, consumer leases, related mortgages and guarantees.
On further investigation of the company, The Adviser found Nova’s website has been removed.
