subscribe to our newsletter
ASIC penalises Westpac financier for NCCP breach

ASIC penalises Westpac financier for NCCP breach

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 of Westpac, 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.”

[Related: ANZ to pay $5 million to customers]

ASIC penalises Westpac financier for NCCP breach
mortgagebusiness logo

Latest News

A regional bank has revealed its full-year 2018 financial results, reporting a fall in residential mortgage settlements amid “challenging...

Former prime minister John Howard has called on the financial services royal commission to “bear in mind the stability and contribution”...

Macquarie Group has secured a stake in Investa Office Fund (IOF) months after Blackstone submitted a $3.1 billion takeover proposal. ...

FROM THE WEB

podcast

LATEST PODCAST: Cash rate to remain unchanged, corporate cops for the banks and a new type of credit card

Do you expect access to credit to get harder this year?