Determination - 7 March 2014
Key issues: Whether the financial services provider engaged in unconscionable conduct in its dealings with the consumer under a debt negotiation service agreement.
Summary of Determination
I find that the FSP engaged in unconscionable conduct in its dealings with the consumer within the meaning of section 12CB of the
Australian Securities and Investments Commission Act 2001 (Cth), by:
accepting payment of fees from the consumer under a service agreement, when it had knowledge that the consumer, a person in a vulnerable position, was not going to obtain a benefit under that agreement; and
providing the consumer with services which the consumer had not agreed to pay the FSP for.
I find that fairness in all the circumstances requires the FSP to refund all fees the consumer paid to it under the agreement.
I order that the FSP pay the consumer the sum of
- service fees of $1,536; and
- interest of $164.
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