ASIC statement to ABC TV's Four Corners program, 30 March 2015

ASIC welcomes the highlighting of important consumer protection issues for payday lending businesses, many who service consumers who are financially vulnerable.

ASIC’s recent report into the sector found that compliance with the new payday lending laws needs to improve. The payday lending industry is on notice to lift standards or firms will face further enforcement action.

ASIC is investigating Good to Go Loans over allegations concerning responsible lending obligations and compliance with payday lending laws. As this is an ongoing operational matter we are unable to comment further.

In relation to broader industry issues, we will engage with lenders and consumer organisations to set out those areas where the industry should be focusing their efforts to ensure that consumers are not being provided with inappropriate credit or paying more than they should.

ASIC is also taking enforcement action against payday lenders. ASIC’s actions have resulted in close to $2 million in refunds to more than 10,000 consumers who have been overcharged when taking out a payday loan. Lenders have also been issued with 13 infringement notices totalling approximately $120,000. And we’ve got more actions on foot, including 16 current investigations and seven matters before the court.

ASIC has already taken a wide range of enforcement actions against payday lenders, and we’ll take more to protect consumers.

Viewers can read ASIC’s recent report here

Viewers can watch a video on ASIC’s report on payday lenders and the new small amount lending provisions here

Editor's note 31 March 2015:

ASIC's enforcement action includes The Cash Store decision where the court handed down a penalty of almost $19 million against a payday lender for inappropriate lending (refer: 15-032MR)