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Thursday 14 June 2012

12-127MR ASIC bans Victorian pay day lender

ASIC has banned Victor Manatakis, of Doncaster, Victoria, from engaging in credit activities for five years after an ASIC investigation found his payday lending business was an unlicensed credit provider.

Mr Manatakis was the former director of Billpal Pty Ltd (Billpal), which was the operator of payday lending business, Cashpal. ASIC found that between August and October 2011, Mr Manatakis’ Billpal engaged in credit activities relating to credit contracts without an Australian credit licence.

Under national consumer credit laws, individuals or businesses who engage in consumer credit activities are required to hold a credit licence, or be an authorised representative of a credit licence holder.

ASIC found that on each occasion Billpal entered into a Cashpal credit contract it was in breach of the National Consumer Credit Protection Act 2009. This Act is designed to protect consumers and ensure ethical and professional standards in the finance industry.

ASIC Commissioner Peter Kell said that, ‘engaging or utilising the services of unlicensed credit operators puts the public at risk.’

‘People in the consumer credit industry need to be aware of the licensing requirements and the implications they will face if they fail to meet these requirements,’ Mr Kell said.

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

Last updated: 23/03/2016 03:14