The Australian Securities & Investments Commission (ASIC) published a keynote speech by Commissioner Alan Kirkland outlining ASIC’s current and upcoming work to improve protections for people who seek or use credit, with a particular focus on predatory lending, lenders’ financial hardship practices, and misconduct in debt management and credit repair. ASIC reported findings from its review of compliance with the new regime for small amount credit contracts, identifying instances of unsuitable lending, failures to identify and distribute products to an appropriate target market, and concerns that some businesses may be attempting to avoid enhanced consumer protections. It also detailed a targeted review of motor vehicle finance practices affecting vulnerable consumers, including First Nations consumers in regional and remote communities, starting with a select group of lenders and expected to expand to brokers and intermediaries, with a public report anticipated later this year; related enforcement activity was cited across multiple firms. On financial hardship, ASIC said it is monitoring improvements following a prior hardship review and is reinforcing obligations through enforcement, including actions against Westpac and National Australia Bank for alleged failures to respond to hardship applications within 21 days and proceedings against Resimac over an alleged “one-size-fits-all” approach to hardship requests. On debt management and credit repair, ASIC said it is considering how to respond to a recommendation from the Independent Review of Australia’s Credit Reporting Framework to investigate the credit repair industry, and flagged closer attention to debt collection practices among ASIC-regulated firms; it referenced infringement notices totalling over AUD 37,000 issued to Chapter Two Holdings and ongoing proceedings involving Bakken Holdings and Ultimate Credit Management. The speech also reiterated that existing licensing and consumer protection obligations apply in areas such as artificial intelligence use and cybersecurity, and pointed to ASIC’s recent work on AI governance and its enforcement action against FIIG Securities concerning alleged prolonged cybersecurity failures.
Australian Securities & Investments Commission 2025-06-17
Australian Securities & Investments Commission sets out strengthened consumer credit supervision and enforcement focus on predatory lending hardship handling and debt management
The Australian Securities & Investments Commission (ASIC) released a keynote speech by Commissioner Alan Kirkland on enhancing credit protections, focusing on predatory lending, financial hardship, and debt management misconduct. ASIC's review of small amount credit contracts found unsuitable lending and target market issues, with scrutiny on motor vehicle finance affecting vulnerable consumers. Enforcement actions include proceedings against Westpac, National Australia Bank, and Resimac for hardship response failures. ASIC is also addressing debt collection and credit repair industry concerns, issuing infringement notices and pursuing legal actions. The speech highlighted obligations in AI and cybersecurity, noting enforcement against FIIG Securities for cybersecurity lapses.