Non-bank lender accused of inadequately handling of hardship notices from vulnerable customers
The Australian Securities and Investments Commission (ASIC) has launched civil penalty proceedings against non-bank lender Resimac Group in the Federal Court, stemming from alleged breaches of the National Consumer Credit Protection Act (NCCP Act) by its subsidiary, Resimac Limited.
ASIC claims that between January 2022 and February 2024, Resimac failed to meet its legal obligations in managing hardship notices submitted by vulnerable borrowers.
The regulator alleges breaches of Section 47 of the NCCP Act, which outlines a credit provider’s general conduct obligations – including the requirement to engage with borrowers experiencing financial hardship.
ASIC has accused Resimac of taking a “one-size-fits-all” approach to handling hardship applications, claiming the lender often demanded comprehensive, standardised documentation from financially distressed customers without adequately assessing the relevance or necessity of those requests based on each borrower's unique situation.
“This approach was particularly unfair for customers experiencing vulnerability, for example, related to domestic and family violence, bereavement, separation or poor health, who were least likely to be in a position to provide the required standard information,” said ASIC deputy chair Sarah Court.
“Resimac acknowledges that its previous practices regarding hardship notices provided by customers could have been better and apologises that this has occurred,” Resimac said in a statement. “Since becoming aware of the issue, Resimac has enhanced its processes to give greater support to customers facing financial difficulties, in accordance with ASIC's recommendations in ASIC Report 782 of May 2024.”
Resimac said it is developing a Financial Contribution Program for affected customers, including refunds of fees and interest.
