ASIC has suspended the Australian credit licence of payday lender PAID International Ltd (PAID).

The company’s licence has been suspended until 7 April 2016 because it ceased to engage in credit activities and is insolvent.

An external administrator was appointed to PAID in January 2015 and the company entered into a deed of company arrangement (DOCA) - a binding arrangement between the company and its creditors - in March 2015.

In October 2014, as part of an enforceable undertaking (EU) accepted by ASIC, the company agreed to refund customers who were charged excessive loan fees (refer: 14-272MR).

The DOCA provides the eligible customers under the EU to receive their refund. The Deed Administrator has since admitted a total amount of $913,946 of claims in relation to the 6650 consumers owed a refund under the EU and anticipates a total dividend of 45 cents in the dollar to be distributed to unsecured creditors including the eligible consumers under the EU.

As at the end of June 2015, $239,308 has been refunded.

Background

ASIC has also cancelled the Australian credit licence of Leadfish Pty Ltd, a lead generation company and subsidiary of PAID.