CEO Warns Members About Significance of ASIC Investigation Of Westpac
Apr 05 2016
ASIC and Westpac and default notice procedures
Although this action by ASIC is related to secured loans, none-the-less it highlights the importance of ensuring your default notice procedures are compliant with the NCCP requirements, regardless of whether the loan is secured or not.
Car finance provider, Capital Finance Australia Limited (Capital Finance), a subsidiary of Westpac Banking Corporation, has paid penalties totalling $493,000 after ASIC found it breached important consumer protection provisions in the National Consumer Credit Protection Act (National Credit Act) relating to the repossession of motor vehicles.
When consumers fail to meet their repayment obligations (or 'default') on a loan, the National Credit Act requires lenders to send written default notices containing specific information about what the lender is proposing to do, how long the consumer has to remedy the default, and what the consumer's rights and obligations are.
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