Date Time
ASIC commences proceedings against Membo Finance over hardship requests
ASIC has commenced civil penalty proceedings in the Federal Court against Membo Finance Pty Ltd (Membo) and its sole credit representative Richmond Group Financial Services Pty Ltd (RGFS) for alleged contraventions of the National Consumer Credit Protection Act (the Act).
These proceedings include allegations of failures by Membo and RGFS to comply with the Act when borrowers experienced financial hardship. Protecting consumers from harm at a time of heightened vulnerability during the pandemic is a priority for ASIC.
Membo and RGFS carry on a credit business trading as ClearLoans, which provides loans between $3,000 and $15,000 on a 12 to 60-month term with a fixed interest rate of 43 per cent per annum. All loans are secured by a personal guarantee, usually given by a friend or relative of the borrower. In the event of default by the borrower, ClearLoans attempts collection from the guarantor.