Cash Converters: Infringement Notices and Consumers Income

cash converters: ASIC had raised concerns that the company had failed to make reasonable inquiries into consumers income and expenses and the loans they issued were unsuitable . Cash Converters has paid a total of 1.35 million for 30 infringement notices from ASIC. It has also agreed to refund eligible consumers 10.8 million in fees through a remediation program overseen by an independent expert who will report to ASIC. ASIC also flagged concerns that Cash Converters had not taken reasonable steps to verify consumers expenses in accordance with its responsible lending obligations, according to Australian Broadcasting Corporation. The regulator deputy chairman Peter Kell said he is particularly worried about lending to welfare recipients. ABC News Giulio Saggin, file photo Related Story Cash Converters class action launched over 420pc interest loans Map Australia Payday lender Cash Converters will refund consumers millions of dollars and pay an infringement notice after an investigation by the Australian Securities and Investments Commission ASIC . Key Points Refunds on 118,000 small credit contracts Cash Converters to refund 10.8 million in feesASIC says Cash Converters violated responsible lending obligations The refunds relate to 118,000 small amount credit contracts, or loans. ASIC is seeking to protect financially vulnerable consumers, many of whom are recipients of welfare payments, from falling victim to unsuitable payday loans, he said. The independent expert will also review Cash Converters business operations. Payday lending is a high priority area for ASIC, and we will continue to pursue lenders who do not follow their responsible lending obligations. (news.financializer.com). As reported in the news.