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ISCOVER
Staff Reporter
In a bid to crack down on rogue operators, the industry watchdog has launched a new surveillance campaign that will weed out unlicensed operators.
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According to a statement by ASIC, the watchdog will conduct a surveillance campaign between September and December 2012 designed to identify entities engaging in consumer credit activities without a licence.
Under the National Consumer Credit Protection Act 2009, individuals or businesses who engage in credit activities are required to hold an Australian credit licence, or be an authorised representative of a credit licence holder.
ASIC commissioner Peter Kell said the campaign was designed to identify traders who applied for an Australian credit licence, but withdrew their application, or had it refused.
“By applying for a licence, they indicated an intention to engage in credit activities. Unless the trader is an authorised credit representative, or subsequently obtains an Australian credit licence, they cannot engage in credit activities,” Mr Kell said.
“Anyone caught engaging in unlicensed credit activity may face criminal prosecution or be banned from obtaining a credit licence.
“We want to ensure consumers feel confident when dealing with lenders, brokers and other credit providers and one way to do this is by weeding out players who aren’t playing by the rules.”
