Motor Finance Wizard pay $11 million in remediation
Financier in hot water over responsible lending practices.
After failing to meet responsible lending obligations, as determined by Australia's corporate regulator, vehicle loans company Motor Finance Wizard has been ordered to pay more than $11 million in customer refunds, write-offs and community benefit funds.
The Australian Securities & Investments Commission (ASIC) reports Motor Finance Wizard signed an enforceable undertaking to implement a remediation program after failing to make reasonable inquiries about consumers' income and expenses and take reasonable steps to verify consumers' expenses.
Motor Finance Wizard offers leases and loans for second-hand vehicles across Australia's east coast.
1,511 customers who entered into a consumer lease or loan with the company between 1 July 2010 and 16 July 2014 will receive a share of $11 million in refunds and write-offs. Motor Finance Wizard will also donate $100,000 to a community benefit program funding consumer initiatives.
In an administrative capacity, the financier will be required to re-assess each consumer's capacity to make payments via a remediation program overseen by an independent auditor who will report to ASIC. Affected consumers will be able to remain in or terminate their lease or loan.
There'll also be an independent review of current business operations and consumer credit compliance.
Motor Finance Wizard will contact affected customers shortly, while the remediation program is to be completed within nine months. If you believe you've been affected, call 13 22 75 for assistance.
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