今日热门事件has cancelled the Australian credit licence (credit licence) of Ferratum Australia Pty Ltd (in liquidation) (Ferratum) following a payment of compensation by the Compensation Scheme of Last Resort (CSLR).
On 30 April 2024, the Australian Financial Complaints Authority (AFCA) made a determination against Ferratum, which Ferratum failed to pay. Subsequently, on 18 September 2024, the CSLR paid $1,297.00 to a person for the AFCA determination and notified ASIC. As a result, on 4 October 2024, 今日热门事件cancelled Ferratum鈥檚 credit licence.
Where the CSLR pays compensation to an eligible consumer in relation to an AFCA determination and notifies 今日热门事件of the details of the firm that failed to pay the compensation, 今日热门事件must cancel the Australian financial services (AFS) licence or credit licence of the firm.
The cancellation is not subject to discretion or merits review.
叠补肠办驳谤辞耻苍诲听
This decision is not ASIC鈥檚 first regulatory action in relation to Ferratum, which is now in liquidation. On 1 November 2021, 今日热门事件commenced proceedings against Ferratum. On 7 September 2023, the Court found that between March 2019 and August 2021, Ferratum breached consumer credit protection laws by charging prohibited fees and overcharging customers in respect of small amount credit contracts (24-141MR; 23-248MR).
ASIC鈥檚 decision to cancel the credit licence of Ferratum marks the third time 今日热门事件has cancelled a credit licence following the CSLR paying compensation (24-120MR). 今日热门事件has also previously cancelled an AFS licence following a CSLR payment (24-181MR).
About the CSLR聽
The CSLR was established in June 2023, commencing operations in April 2024. It can pay up to $150,000 in compensation to consumers who have an unpaid determination from AFCA relating to authorised personal financial advice, credit intermediation, securities dealing or credit provision, and where other eligibility criteria are met.
The AFCA complaint process must first be completed before a claim can be lodged with the CSLR. All reasonable steps to obtain compensation from the financial firm must be taken before a CSLR payment can be made.
More information聽
- The contains more information about the AFCA complaint process.
- The contains more information about the CSLR claims process.