The Federal Court has found that, between July 2016 and November 2020, small amount lender, Sunshine Loans entered into over 670,000 contracts which included an amendment or rescheduling fee that is not permitted by the National Credit Code.
The Court found Sunshine Loans required the payment of these fees by consumers over 12,000 times and accepted payments on over 8,000 occasions. Sunshine Loans received nearly $300,000 from customers, even though the fees were prohibited under the National Credit Code.
The Court also found that Sunshine Loans failed to comply with credit legislation as a result of this conduct.
ASIC Chair Joe Longo said: ‘Consumers of SACC loans are some of Australia’s most vulnerable. They often take out these small loans for just a few hundred dollars to cover emergency or essential expenses. SACC loans are extremely costly and ASIC is committed to ensuring consumers aren’t charged additional prohibited fees.’
Sunshine Loans ceased charging the amendment or rescheduling fees in November 2020, shortly after ASIC intervention, without admission of liability.