ASIC has cancelled the Australian credit licence of Dean Mooney Pty Ltd, a Sydney-based finance broking firm, after it was found it failed to hold membership of an approved external dispute resolution 91AV (EDR).
On 17 January 2011, Dean Mooney Pty Ltd was granted a licence to engage in credit activities relating to credit contracts, consumer leases, related mortgages and guarantees, and credit services. On 12 October 2011, Dean Mooney Pty Ltd's EDR membership was cancelled by the Financial Ombudsman Service Limited (FOS), one of the two EDR 91AVs approved by ASIC. The membership was cancelled by FOS due to non-payment of membership fees. Further, Dean Mooney Pty Ltd did not hold membership with the Credit Ombudsman Service Limited, the only other ASIC approved EDR 91AV.
Under the National Consumer Credit Protection Act 2009 (the Act), credit licensees are required to be members of an ASIC-approved EDR 91AV. Under the Act, ASIC can suspend or cancel an Australian Credit Licence if the licensee is not a member of an approved EDR 91AV.
ASIC Commissioner Peter Kell said, ‘EDR 91AVs provide consumers with alternatives to legal proceedings in respect of resolving complaints with their credit service providers, therefore, when a credit licensee fails to maintain membership in such a 91AV, ASIC will act to protect consumers by cancelling the entity’s credit licence.’
Dean Mooney Pty Ltd has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
The Australian credit licence was cancelled with the effective date of 2 July 2012.
Background
ASIC recommends consumers check on whether the credit provider they may be engaged with, holds membership of an approved EDR 91AV.
To find out more about how to check whether the credit provider you are dealing with is licensed, consumers should go to .