The Australian Securities & Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against RAMS Financial Group (RAMS), alleging systemic misconduct in the way RAMS-branded home loans were arranged and widespread unlicensed conduct between June 2019 and April 2023. ASIC alleges RAMS, an Australian Credit Licensee and a wholly owned subsidiary of Westpac Banking Corporation, dealt with unlicensed referrers and failed to properly supervise its franchise network, with inadequate policies and procedures enabling misconduct by franchisees and their staff. Examples cited include the submission of false payslips from non-existent employers, altering customers’ liabilities and expenses to meet serviceability requirements, and manufacturing a fake contract of sale. ASIC alleges contraventions of sections 31(1) and 47(1)(a), (b), (d) and (e) of the National Consumer Credit Protection Act 2009 and is seeking declarations and pecuniary penalties; RAMS has admitted liability and remediated customers who suffered detriment. A first case management hearing date has not yet been scheduled.
Australian Securities & Investments Commission 2025-06-04
Australian Securities & Investments Commission launches civil penalty case against RAMS for systemic home loan franchise misconduct
ASIC has initiated civil penalty proceedings against RAMS Financial Group, alleging systemic misconduct in arranging RAMS-branded home loans and unlicensed conduct from June 2019 to April 2023. RAMS, a Westpac subsidiary, engaged with unlicensed referrers and inadequately supervised its franchise network. RAMS has admitted liability and remediated affected customers.