ASIC Finds Nimble Assessment Algorithms Not Adequate
Mar 23 2016
ASIC Finds Nimble Assessment Algorithms Not Adequate For All RLOs
An article in the Sydney Morning Herald has reported on a significant investigation by ASIC where small loans lender Nimble was found not to adequately assess some applicants as to their ability to repay their loans. According to Nimble's CEO, the loans affected represented only a small fraction (1.2%) of all the loans that were written over a two year period from the start of new legislated responsible lending obligations (RLOs) in July 2013.
"These application assessment issues were entirely unintended and were resolved in collaboration with ASIC," Mr Malia said." ... "Nimble is always striving to have the best credit assessment systems and has made a significant investment in its application assessment processes that allow Nimble to continue making responsible lending decisions" he said."
Nimble has been fined and ordered to pay back fees to affected customers. ASIC also required Nimble to donate $50,000 to financial counselling services. The article further reports that, "According to ASIC, Nimble has made significant changes to their system and processes since the ASIC investigation commenced."
.Click here to read the full article.