ASIC media releases are point-in-time statements. Please note the date of issue and use the internal search function on the site to check for other media releases on the same or related matters.

Monday 21 September 2015

15-262MR ASIC suspends payday lender’s credit licence

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.

Last updated: 23/03/2016 03:08