The sole director of a Cairns-based car finance provider and brokerage, who has declared bankruptcy off the back of ASIC’s penalties, has been permanently banned from engaging in credit activities.
The Australian Securities and Investments Commission (ASIC) has permanently banned former credit representative Mr Colin William Hulbert, of Cairns, Queensland, from engaging in any credit activity.
Mr Hulbert was the sole director of Channic Pty Ltd (Channic), Cash Brokers Pty Ltd (Cash Brokers) and Ang Hulbert & Associates Pty Ltd (AHA). Channic and Cash Brokers both operated a used-car dealership in Cairns.
The move comes more than a year after the Federal Court fined the sole director and several of the companies of a total of $776,000 for breaching consumer credit laws.
In addition to imposing fines and cost orders, the court also awarded a total of $47,699 in compensation to affected consumers.
However, the fines are yet to be paid, and in March 2018, ASIC obtained orders “winding up” Channic and Cash Brokers as well as payday lender Fast Access Finance for their failures to pay fines and cash orders awarded to the regulator by the Federal Court.
Bankruptcy proceedings were also commenced by ASIC against the director of the companies Colin William Hubert. Mr Hulbert, however, declared himself bankrupt prior to the hearing.
Channic and Cash Brokers (CBPL) both operated from a used-car dealership in Cairns which was also owned by Mr Hulbert.
ASIC brought civil penalty proceedings after the Indigenous Consumer Assistance Network reported that Channic and Cash Brokers were dealing unjustly with vulnerable Indigenous consumers from the remote community of Yarrabah.
Cash Brokers assisted consumers to obtain loans from Channic at an interest rate of 48 per cent to purchase vehicles from AHA. This was in addition to charging brokerage fees of up to $990. According to ASIC, Channic did not assess whether the loans were suited to the consumers’ requirements.
The regulator has now concluded that Mr Hulbert is likely to contravene credit legislation in the future and has banned him from engaging in credit activities permanently.
ASIC found that between December 2008 and June 2012, Mr Hulbert failed to comply with his obligations under credit legislation, in that:
Mr Hulbert’s banning will be recorded on ASIC’s register for banned and disqualified persons.
Mr Hulbert has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
[Related: ASIC seeks to bankrupt car lender director]
The share of new loans approved with an LVR greater than 80 per c...
More than a quarter of the $4.19 billion dollars of bank fees cha...
Peer-to-peer lender RateSetter has announced that it has dropped ...