ASIC has cancelled or suspended eight Australian credit licences between 1 July 2020 to 31 December 2020 for failing to be a member of the Australian Financial Complaints Authority (AFCA).
Australian credit licence holders are required by law to join AFCA. AFCA membership gives consumers access to an independent dispute resolution scheme if a complaint is not properly considered by a credit licensee. AFCA is free, fair and independent, and provides consumers and small businesses with an alternative to tribunals and courts to resolve complaints.
ASIC was satisfied that it was in the public interest to cancel or suspend the credit licences. The companies and individuals were:
- Set Leasing Pty Ltd ACN 121 686 673 (ACL number 391269)
Licence cancelled 22 December 2020;
- Loanr Pty Ltd ACN 612 064 436 (ACL number 492813)
Licence cancelled 27 November 2020;
- Wei Ting Li (ACL number 398112)
Licence cancelled 2 December 2020;
- Paul John Guthrie (ACL number 390106)
Licence cancelled 19 November 2020;
- George Frossinos (ACL number 391981)
Licence suspended between 1 February 2021 and 31 May 2021;
- Bideloan Pty Ltd ACN 610 726 255 (ACL number 492369)
Licence cancelled 24 November 2020;
- Eoannidis Property Investments Pty Ltd ACN 133 412 192 (ACL number 495478)
Licence suspended between 1 December 2020 and 1 December 2021; and
- Wanda Jayne Cepak (ACL number 416518)
Licence cancelled 15 December 2020.
ASIC continues to work closely with AFCA to identify financial services licensees and credit licensees that are not complying with their obligations. Where an entity fails to comply, ASIC will take formal action to cancel or suspend their licence.
Background
Under the National Credit Act, ASIC has the power to cancel or suspect credit licences.
On 1 November 2018, AFCA was formed to provide external dispute resolution services for consumers that have unresolved complaints with entities providing financial and credit services. AFCA deals with complaints about financial firms including banks, credit providers, insurance companies and brokers, financial advisers, managed investment schemes and superannuation trustees.
In Australia, as part of their general conduct obligations, all financial services licensees and credit licensees are required to obtain AFCA membership from 1 November 2018.
