As read in Mortgage Business

ASIC has found a Westpac-owned credit provider guilty of breaching important consumer protection provisions in the National Consumer Credit Protection Act (NCCP).

Capital Finance Australia, a subsidiary ofWestpac, has paid penalties totalling $493,000 after ASIC found that between March and June 2015, the car finance provider failed on 55 occasions to provide customers with default notices prior to commencing enforcement proceedings to repossess mortgaged vehicles.

ASIC also found that Capital Finance failed on three occasions to provide customers with legally-required information setting out their rights and the options available to them within the required time frame after it repossessed mortgaged vehicles.

As a result, consumers were not given information about their legal rights and protections when they were in danger of having their cars repossessed, ASIC said in a statement.

“For example, consumers were not advised that they had 30 days to remedy a default before Capital Finance could commence enforcement proceedings.”

“Consumers were also not advised that they could give notice of their financial hardship to Capital Finance and seek a variation to the repayments.”

ASIC Deputy Chairman Peter Kell said it is crucial that credit providers engage responsibly with consumers who are having difficulty in making their repayments and who may be experiencing financial hardship.

“Having a car repossessed can have a significant impact on a consumer and car financiers must ensure that key information is provided to consumers,” he said.

“ASIC will act against licensees who fail to meet these obligations.”

John can be contacted on 0749722081 or 0410433919. or email him at jwhitten@ihl.net.au or net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).