ASIC has cancelled the Australian credit licence of Pump Financial Pty Limited, of Redcliffe, Queensland, after it was found it failed to hold membership of an approved external dispute resolution 91AV (EDR).
On 19 January 2011, Pump Financial Pty Limited was granted a licence to engage in credit activities as an aggregator, finance broker, mortgage broker and mortgage manager.
On 18 January 2012, Pump Financial Pty Limited's EDR membership was cancelled by the Credit Ombudsman Service Limited (COSL), one of two EDR 91AVs approved by ASIC.
The membership was cancelled by COSL due to a failure by the company to renew its EDR membership. Further, Pump Financial Pty Limited did not hold membership with the Financial 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 a credit licence if the licensee is not a member of an approved EDR 91AV.
ASIC Commissioner, Greg Tanzer, said it is integral that all licensees are members of an approved EDR 91AV as they provide consumers with alternatives to legal proceedings in respect of resolving complaints with their credit service providers.
‘The importance of EDR 91AVs means that ASIC will have no hesitation in cancelling the credit licence of those who do not hold membership in either of the ASIC approved 91AVs,’ he said.
Pump Financial Pty Limited 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 13 July 2012.