Consumer Action is pleased to see ASIC take strong action against credit licence holder Zaam Rentals – the cancellation of Zaam Rentals’ credit licence should act as a warning to other credit providers that responsible lending laws aren’t to be taken lightly and that breaching these laws can have severe consequences for a business.
Our case work suggests that there are other businesses operating in the credit sector that have a very similar modus operandi to Zaam, and we look forward to ASIC applying the same standards across the market and taking action where responsible lending laws have been breached.
It’s significant that ASIC has shown a willingness to cancel a credit licence and we encourage it to take similar action where rogue behaviour is evident. Too often, licensing decisions seem to focus on the financial well-being of the business owner without equivalent consideration of the significant costs unfair business models or practices can impose on often vulnerable consumers.
The Murray Mallee Community Legal Service should also be congratulated for bringing Zaam’s behaviour to the attention of ASIC, the media, and its local community. Its hard work advocating for Zaam’s clients is a clear illustration of the value of community legal centres and their strong connection with local communities.