ASIC cancels or suspends 21 credit licenses

Oksana Patron

16 December 2022

The Australian Securities and Investments Commission (ASIC) has cancelled or suspended 21 Australian credit licences for failing to be a member of the Australian Financial Complaints Authority (AFCA).

ASIC said it was working with AFCA to identify financial services licensees and credit licensees that did not comply with their obligation to maintain their AFCA membership. Where an entity failed to comply, ASIC would take action to cancel or suspend their credit licence.

Australian credit licence holders are required by law to be a member of AFCA and AFCA membership gives consumers access to a free, fair, and independent dispute resolution scheme if a complaint is not properly considered or resolved by a credit licensee.

Under the National Credit Act, ASIC has the power to cancel or suspend credit licences.

On 1 November 2018, AFCA was formed to provide external dispute resolution services for consumers that have unresolved complaints with entities providing financial and credit services.

As part of their general conduct obligations, all Australian financial services licensees and ACL holders are required to obtain AFCA membership.

In the period 1 April 2022 and 9 December 2022 ASIC cancelled or suspended the credit licences of the following:

• Umziwam Pty Ltd
  Licence cancelled 14 April 2022
• Paul Michael Motors Pty Ltd
  Licence cancelled 2 June 2022
• Firstsource Advantage LLC
  Licence cancelled 9 June 2022
• Underwood Car Finance Pty Ltd
  Licence cancelled 20 June 2022
• Asia Pacific Finance Pty Ltd
  Licence cancelled 22 June 2022
• Fiduciary Funds Management Pty Ltd
  Licence cancelled 7 July 2022
• Nikki Jayne Bedggood-Forsyth
  Licence cancelled 12 July 2022
• First Mortgage Home Loan Pty Ltd
  Licence cancelled 13 July 2022
• Sooner Solutions Pty Ltd
  Licence cancelled 19 July 2022
• Covesta Finance Pty Ltd
  Licence suspended 19 July 2022
• Thy Mai Nguyen
  Licence cancelled 9 August 2022
• Epping PFC Pty Ltd
  Licence cancelled 12 August 2022
• Capital-West Finance Pty Ltd
  Licence cancelled 23 August 2022
• Deposit Shop Pty Ltd
  Licence cancelled 24 August 2022
• Cani Management Pty Ltd
  Licence cancelled 25 August 2022)
• W. Day and H.R El-Hassan

Licence cancelled 31 August 2022

• Puyi Finance

Licence cancelled 4 October 2022

• IPLAN Financial Solutions Pty Ltd  Licence cancelled 9 November 2022
• Australian Mortgage Partners Pty Ltd  Licence cancelled 9 November 2022
• Kingston Capital Services Australia Pty Ltd Licence cancelled 9 December 2022
• Thi My Hien Dang Licence cancelled 9 December 2022