ASIC has announced that its industry-wide review found improper financing of tyre and rim insurance premiums by car financiers.

Section 144 of the National Credit Code prohibits lenders financing the premium on insurance taken out by the debtor over mortgaged property for a period of insurance exceeding 1 year, but may provide credit for or finance successive premiums for periods of 1 year or less.

More than 30,000 car owners will be paid back over $15 million by 15 financiers.