ASIC has announced that Fast Easy Loans Pty Ltd has agreed to refund more than 2,000 consumers in Queensland, New South Wales and the Australian Capital Territory a total of $477,900 following ASIC’s concerns that it charged consumers a brokerage fee above the state-based annual interest rate caps of 48%.

From September 2010 to June 2013, Fast Easy Loans Pty Ltd (Fast Easy) acted as the broker for a related lender, Easy Finance Loans Pty Ltd (Easy Finance), and charged consumers a brokerage fee in excess of certain state and territory interest rate caps. In charging a brokerage fee, Fast Easy engaged in credit activities without a credit licence.

Fast Easy and Easy Finance had the same directors and owners and operated out of the same premises.

Commonwealth legislation introduced a costs rate cap on small amount consumer credit loans on 1 July 2013 which superseded the state and territory-based interest rate caps.

The National Consumer Credit Protection Amendment (Small Amount Credit Contracts) Regulation 2014 prohibits the following persons from requiring or accepting payment by the debtor of a fee or charge in relation to a small amount credit contract:
1. A person who introduces a debtor to a credit provider (whether or not the person is associated with the credit provider).
2. A person who has been introduced to a debtor by a credit provider to provide a service in relation to a small amount credit contract (whether or not the person is associated with the credit provider).

Although the brokerage fee did not exceed any applicable interest rate caps in other states, Fast Easy has also put in place steps to notify consumers in Northern Territory, Western Australia, South Australia, Victoria and Tasmania that they can claim a refund for the brokerage fee that was charged.