ASIC has commenced proceedings in the Federal Court of Australia against two companies engaged in finance broking.

ASIC alleges that Australian Lending Centre Pty Ltd and Sydney Lending Centre Pty Ltd contravened the Australian Securities and Investments Commission Act (ASIC Act) by falsely representing that various loan contracts were wholly or predominantly for business or investment purposes rather than for personal, household or domestic use.

Consumers with loans for personal, household or domestic purposes are protected by the Uniform Consumer Credit Code (UCCC), however, loans that are wholly or predominantly for business or investment purposes fall outside this legislation.

ASIC alleges that Australian Lending Centre Pty Ltd and Sydney Lending Centre Pty Ltd engaged in unconscionable conduct in broking and entering various finance broking contracts between 2005 and 2008.

Further details are available at ASIC.