ASIC has cancelled the Australian credit licence of Ms Rosa Villella, the sole director of two businesses operating out of Dandenong, Victoria, for failing to comply with numerous responsible lending obligations.

Ms Villella, the sole director of RV Investments Pty Ltd and All Loans R Us Pty Ltd, operates two local businesses known as Rent & Buy Automotive and All Loans R Us.

All Loans R Us provided loans under Ms Villella's credit licence to purchasers of cars from Rent & Buy Automotive.

ASIC's investigation found that – along with a number of other failures – between 12 May 2011 and 7 October 2013, All Loans R Us entered into credit contracts:

• without making reasonable inquiries about the consumer's requirements and objectives
• without making reasonable inquiries about the consumer's financial situation, and
• which did not contain the annual percentage rates and method of calculation of the interest charges payable under the credit contract.

ASIC also found that Ms Villella failed to:

• undertake continuing professional development activities
• keep records of all material forming the basis of a credit assessment
• provide ASIC with certain information about the credit activities she engaged in, and
• keep financial records that correctly recorded and explained transactions and the financial position of her credit business.

ASIC found there was systemic failure on the part of Ms Villella and All Loans R Us to comply with their obligations and there were clear deficiencies in their practices and processes.

Deputy Chairman Peter Kell said, 'Licensees who provide loans to members of the public must act with honesty, integrity and in the customer’s best interest at all times.

'ASIC takes a licensee's failure to perform all required duties, including the necessary credit assessment and verifications, very seriously. Licensees who breach these requirements will be held to account.'

Ms Villella has the right of appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.