ASIC has banned Victorian-based household goods rental company Ray Rentals Pty Ltd, and its sole director, Mr Amandeep Sharma, from offering credit for four years.
An ASIC investigation found Ray Rentals was providing credit without an Australian credit licence and was promoting this activity on its website.
Between 23 May 2012 and 24 July 2012, Ray Rentals was found to have offered household items on ‘rent to buy’ terms, in regional NSW and Victoria, to 111 people, many of whom lived in remote indigenous communities.
Under the National Consumer Credit Protection Act 2009 (National Credit Act), individuals or businesses who offer credit must have an Australian Credit Licence, or be an authorised representative of a credit licence holder.
‘ASIC is all about making sure consumers can be confident and informed, and a big part of this is putting pressure on those in the credit industry to do the right thing and comply with the law. When they don’t ASIC will take action,’ said ASIC Commissioner Greg Tanzer.
This outcome is in addition to the 22 administrative remedies (licence cancellations, suspensions and bannings) obtained by ASIC in the consumer credit industry in the 6 months from 1 January to 30 June 2013. These details are outlined in our recently released enforcement report (refer: REP 360).
Consumers can check if someone is licensed using ASIC’s registers.