ASIC has permanently banned a loan writer in Victoria from engaging in credit activities, after finding that four loans submitted by him to a division of ANZ contained false information or false documents.
Adam Edward Greene, a car yard loan writer, wrote and submitted loans for customers buying vehicles from used-car dealership Combined Motor Traders between 2014 and 2015.
ASIC found that four loans submitted by Mr Greene and approved by Esanda, a division of ANZ, contained false information and two of those loans contained false documents that were not given to him by the applicants.
It is not the first time that the regulator has banned a broker for writing false loans for Combined Motor Traders; it also banned Vaughn Thomas Hopkins last year for submitting nine applications with false payslips (and three with falsely inflated client assets) to Esanda between 2014 and 2015.
Speaking after the banning of Mr Greene, ASIC deputy chair Peter Kell said: "Using false information to get a loan for a customer who might not be able to afford it is not a smart sales tactic — it is illegal.
"This is not the first time ASIC has identified this type of conduct with car loans. Lenders need to look very carefully at the way they manage the approval of these types of loans, including the way in which car yard employees provide assistance to consumers to obtain finance."
He added: "If their commission structures are encouraging illegal practices, they should make changes."
Mr Greene has the right to seek a review of ASIC’s decision to the Administrative Appeals Tribunal.
The head of a boutique aggregator has explained the group’s pos...
According to one economist, the reported rise of the average loan...
Auswide Bank has confirmed that it is actively seeking to replace...