ASIC notes today’s decision by the Federal Court in its legal action against two payday lenders (refer: 14-150MR).

ASIC’s application for orders from the Court was dismissed because the Court found Gold Coast-based Teleloans Pty Ltd and Finance & Loans Direct Pty Ltd operated outside the reach of the National Credit Act based upon its language.

ASIC is reviewing the judgment.

In its judgment, the Court noted that it was a matter for Parliament to modify any anomalies that might arise from the meaning of the plain language of the legislation. ASIC reminds lenders that the language of the National Credit Act has been changed. Fees and charges imposed by lenders will now be assessed by ASIC against the new wording.

In particular, on 13 June 2014, Reg 50A of the National Consumer Credit Protection Regulations 2010 commenced which clarified the fees and charges that must be included for the purposes of the s6 exemption in the National Credit Code.