ASIC has announced it has commenced an action in the Federal Court against GoGetta Equipment Funding Pty Ltd for unlicensed consumer leasing after ASIC accepted an Enforceable Undertaking (EU) from the company to carry out a remediation program.
ASIC is seeking civil penalty orders relating to the company’s admitted contraventions of:
(i) section 29 of the National Credit Act, by being a lessor under 10 consumer leases, when it did not hold a licence under that Act authorising it to engage in that credit activity;
(ii) section 29 of the National Credit Act, by exercising its rights as lessor under 10 consumer leases, and thereby engaging in credit activity when it did not hold a licence under that Act authorising it to engage in that credit activity;
(iii) section 32 of the National Credit Act, by demanding, receiving, and/or accepting fees, charges or other amounts from each of the consumers who were parties to each consumer lease for engaging in a credit activity, when it did not hold a licence under that Act authorising it to engage in that credit activity.
Under the EU the company will waive arrears and remaining payments and refund interest fees and charges already received.
Facts
SIV Capital (previously known as Silver Chef) set up a new division (GoGetta) which carried on the business of leasing light passenger vehicles to customers during the period from 1 July 2014 to 23 February 2018 (when it ceased that business).
Throughout that period, neither GoGetta nor SIV Capital held an Australian credit licence or was appointed a credit representative of any person that held an ACL.
GoGetta entered into 5,183 rental agreements with customers, under which GoGetta leased light passenger vehicles to customers.
GoGetta admits that it:
1. did not, when or before entering into any Agreement, obtain from the Consumer a declaration that the Vehicle(s) was/were hired wholly or predominantly for business purposes; and
2. has not established that any Agreement was not a consumer lease to which Part 11 of the National Credit Code applies.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
