ASIC has announced that car finance provider, Capital Finance Australia Limited (Capital Finance), a subsidiary of Westpac Banking Corporation, has paid penalties totalling $493,000 after ASIC issued 58 infringement notices for breaches of National Credit Act provisions relating to the repossession procedures for cars financed by it.

ASIC found that between March 2015 and June 2015, Capital Finance:

• failed on 55 occasions to provide customers with default notices prior to commencing enforcement proceedings to repossess mortgaged vehicles; and
• on three occasions, did not provide customers with legally required information setting out their rights and the options available to them within the required time frame after it repossessed mortgaged vehicles.

Capital Finance voluntarily reported the breaches to ASIC.

It has implemented new processes to ensure compliance with these provisions and has voluntarily implemented a remediation plan for affected customers.