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The Australian Securities and Investments Commission (ASIC) has cancelled the Australian credit licence (ACL) of NSW-based credit provider Auckland Finance Pty Ltd.
ASIC confirmed that the ACL cancellation took full effect on 31 January 2025.
According to the regulator, the ACL was cancelled after it was made aware that Auckland Finance had failed to engage in any credit activities for some time, and under the National Consumer Credit Protection Act 2009, ASIC may suspend or cancel an ACL if a credit provider ceases engaging in credit activities.
Auckland Finance had held its ACL since 31 March 2011 and was authorised to engage in credit activities as a credit provider.
ASIC has confirmed that Auckland Finance has the right to appeal to the Administrative Review Tribunal for a review of its decision.
Other ACLs recently cancelled
The regulator recently cancelled the ACL of personal lender Ferratum Australia Pty Ltd (Ferratum) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
This is not ASIC’s first regulatory action against Ferratum, which had already entered liquidation.
ASIC first commenced proceedings against Ferratum on 1 November 2022 and it was found almost a year later by the court that between March 2019 and 2021, the lender had breached consumer credit protection laws by charging prohibited fees and overcharging customers in small amount credit contracts.
In April 2024, the Australian Financial Complaints Authority (AFCA) made a determination against Ferratum, which the lender failed to pay, and on 18 September 2024, the CSLR paid $1,297 to a person for the AFCA determination and notified ASIC.
This has resulted in ASIC cancelling Ferratum’s credit licence, with the cancellation not being subject to discretion or merits review.
This followed ASIC cancelling the ACLs of both Ultimate Credit Management Pty Ltd (Ultimate Credit) and Worry Free Finance Pty Ltd (Worry Free) also following payments of compensation by the CSLR.
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