Non-bank Lenders Are In A Black Hole
Apr 16 2016
Lenders in a legislative "black hole"
A recent article (14th April 2016) by Nick Nichols writing in Business News Australia has shed light on issues facing two non-bank ACL-licenced lenders recently investigated by ASIC: Nimble and Fair Go Finance. The article quotes NCPA CEO Mr Phil Johns and his opinion about underliying issues concerning these investigations.
"Johns says the court order against Nimble, and another being sought against Fair Go Finance, could be viewed by the general public as ASIC doing its job. However, he says the headlines that these issues create mask the deeper concerns facing the industry, which last year serviced two million customers with loans totalling $667 million."
It appears that this issue fundamentally comes down to how current legislation is interpreted by different parties including ASIC. Johns continues in the article,
"There is no lender operating without legal advice, and the key point for both Nimble and Fair Go Finance is that both of those firms took legal advice from tier one law firms," says Johns. "And they implemented that advice as given."
CLICK HERE to read the full article or download the pdf at the bottom of this page.