• Email

©2019 by Andrea Beatty.

Search
  • Andrea Beatty

ASIC takes action against Volkswagen Financial Services Australia Pty Limited

ASIC has commenced proceedings against Volkswagen Financial Services Australia Pty Limited (Volkswagen) in the Federal Court of Australia.


The corporate watchdog alleges that between 20 December 2013 and 15 December 2016, Volkswagen contravened the responsible lending provisions outlined in the National Consumer Credit Protection 2009 (Cth) in regards to 49,380 loan contracts by:

· not making reasonable inquiries about borrowers’ living expenses in contravention of ss 128(d) and 130(1)(b) of the National Credit Act in relation to a subset of the loans;

· not taking reasonable steps to verify borrowers’ living expenses in contravention of ss 128(d) and 130(1)(c) of the National Credit Act in relation to each of the loans; and

· not making an assessment in accordance with s 129 of the National Credit Act in relation to whether each of the loan contracts was unsuitable for the relevant consumer, in contravention of s128(c) of the National Credit Act.


The maximum penalty for one contravention of the relevant provisions during the period of the contraventions was 10,000 penalty units which equates to $1.7 million in the period to 31 July 2015 and $1.8 million thereafter.

6 views