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‘Predatory’ lenders seek licence from ASIC

by Staff Reporter7 minute read

Making headlines today, The Sydney Morning Herald has reported that two lenders, previously defined as being ‘predatory’ by the courts, have registered as consumer credit providers with ASIC.

The two companies, Bleier Mortgage Corporation and Permanent Mortgages, were found guilty of predatory lending by the NSW Supreme Court and WA Supreme Court respectively.

According to the paper, in 2006 Bleier arranged a $195,000 loan for borrowers Michael and Karen Cook – $100,000 above what the major banks agreed to lend.

The court ruled that the loan was unjust.

Permanent Mortgages was the subject of other judgments, including a ruling this year in the Supreme Court of Western Australia in which a 2003 mortgage was set aside because Permanent Mortgages had dealt unconscionably with an 85-year-old woman.

ASIC must now determine whether or not it will allow these lenders to obtain an Australian Credit Licence.

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