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ASIC slaps licence conditions on car financier

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ASIC slaps licence conditions on car financier

James Mitchell 2 minute read

Following surveillance, ASIC has imposed conditions on the Australian credit licence of Green Light Auto Group Pty Ltd, which trades as Carboodle.

ASIC’s surveillance uncovered Carboodle’s systems and procedures were not sufficient to ensure it was complying with national consumer credit laws, including meeting its responsible lending obligations. In addition, it failed to obtain written consent to enter a property when repossessing leased motor vehicles.

ASIC said that while the company has made changes to its processes and procedures, the licence conditions will require Carboodle to appoint an independent compliance consultant to review its overall compliance arrangements. Carboodle is required to provide a copy of the consultant’s report to ASIC, as well as addressing any deficiencies identified by its review.

ASIC deputy chairman Peter Kell said the national credit legislation provides important protections to consumers both when entering into consumer leases and when experiencing difficulty meeting scheduled payments.

“These are key areas of focus for ASIC, and we will take appropriate action where we identify concerns,” he said.

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[Related: ASIC imposes licence conditions on national brokerage]

ASIC slaps licence conditions on car financier
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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