ASIC has made a final stop order preventing Indy-C-Fashion Accessories Pty Ltd (Indy-C) from offering Centrepay credit arrangements to consumers in its store in Katherine.
An ASIC Delegate determined that Indy-C offered its credit arrangements without making a Target Market Determination (TMD) which is required to ensure suitable financial products are provided to consumers, having regard to their needs and objectives.
When Indy-C did make a TMD, the ASIC Delegate determined that if the credit arrangement was distributed in the way it suggested, it would not be reasonable to conclude that it would be likely that a consumer receiving the credit arrangement was in the target market.
ASIC Deputy Chair Sarah Court said, ‘Indy-C provided credit arrangements to First Nations consumers to purchase clothing and household goods via deductions from their Centrelink benefit payments in circumstances where ASIC considers it did so without considering whether the credit arrangement would be consistent with the consumer’s objectives, financial situation, and needs. Following regulatory action from ASIC, Indy-C made multiple draft TMDs, however ASIC considers none complied with Indy-C’s design and distribution obligations (DDOs).
‘This is the second time ASIC has made a final stop order to prevent a business from offering vulnerable consumers a credit arrangement where we consider the arrangement to be non-compliant with the DDOs. We will continue to use our full range of powers, including stop orders, to disrupt entities in these circumstances.’
