Key Issues: Responsible lending obligations | Hardship provisions | Repossession of a vehicle | Consumer loan | Lender
The FSP was unable to provide us with information to show that it complied with its responsible lending obligations. As such, we drew a negative inference from the non-receipt of this information to infer that the FSP breached its responsible lending obligations. After completing our own serviceability assessment, we found that the consumers could not afford the loans. We also found that the FSP breached the hardship provisions under the National Credit Code and breached the National Credit Code when it repossessed the consumers’ vehicle.