The Australian Securities & Investments Commission announced that the Federal Court imposed penalties totalling AUD 7.4 million on Rent4Keeps Pty Ltd and its largest franchisee, Darranda Pty Ltd, for overcharging consumers on essential household goods and failing to meet their obligations as credit licensees. Following a nine-day trial, the Court found Darranda entered into 516 agreements described as “leases” that were in fact credit contracts, resulting in breaches of the 48 per cent annual rate cap and failures to disclose key contract details, including the interest rate and the cash price of the goods. Darranda was also found to have failed to act efficiently, honestly and fairly in engaging in credit activities, while Rent4Keeps was found to have been knowingly involved in Darranda’s breaches. The business model targeted low income consumers and Centrelink recipients, with examples including goods retailing for around AUD 795 to AUD 1,229 sold via instalments for totals between AUD 4,316 and AUD 5,980 over two years; ASIC noted customers typically paid almost four times the retail cost.
Australian Securities & Investments Commission 2025-08-12
Australian Securities & Investments Commission secures AUD 7.4 million Federal Court penalty against Rent4Keeps and Darranda for unlawful overcharging on essential goods
The Australian Securities & Investments Commission announced that the Federal Court imposed AUD 7.4 million in penalties on Rent4Keeps Pty Ltd and its largest franchisee, Darranda Pty Ltd, for overcharging consumers and failing to meet credit licensee obligations. Darranda entered into 516 agreements misrepresented as leases, breaching the 48% annual rate cap and failing to disclose key contract details. Rent4Keeps was complicit in these breaches, targeting low-income consumers and Centrelink recipients, leading to payments nearly four times the retail cost of goods.