Determination - 15 December 2014 (2)

Key issues: Credit Mortgage broker | Responsible lending | Unsuitable credit contract | Affordability

Summary of Determination

  1. The finance broker provided credit assistance to the consumers from 24 August 2011 to March 2012.  The finance broker was a credit representative of the FSP during this period (representative).  Accordingly, the FSP is responsible for the representative’s conduct.
  2. I find that the representative provided credit assistance to the consumers by suggesting and assisting the consumers to apply for a particular credit contract with a particular credit provider in circumstances where that credit contract was unsuitable for the consumers.  In doing so, I find that the representative engaged in conduct prohibited by section 123 of the National Consumer Credit Protection Act 2009 (Cth) (NCCPA).
  3. To resolve the complaint, I order that the FSP pay the consumers the sum of $21,989.95, as compensation for the loss they have suffered as a result of the FSP’s conduct.  
Follow this link for a full copy in PDF >>  Determination | 15 December 2014