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ASIC intervenes in FirstMac low doc enforcement

Staff Reporter 1 minute read

An ongoing ASIC investigation into the Streetwise Group has now become a test case for low-doc loan enforcement as Tonto Home Loans (now FirstMac) looks to recoup losses by seizing property from former Streetwise clients.

The body said it is set to test the legal and regulatory framework that applies to enforcement action taken against borrowers by low-doc lenders where “the conduct on an intermediary toward a borrower is, or may be, in question”.

Pursuant to section 1330 of the Corporations Act, the ASIC intervention relates to proceedings commenced by Tonto Home Loans Australia (now FirstMac Limited) and Permanent Trustee Company, who are seeking to take possession of properties owned by former Streetwise borrowers.

As part of the ongoing ASIC investigation into Streetwise, director Kovelan Bangaru was arrested in California and extradited in 2007 after fleeing Australia following the $63 million collapse of the investment group.

 

ASIC intervenes in FirstMac low doc enforcement
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