Ex-credit lender back in court
A man previously fined three quarters of a million dollars for contravening credit legislation has faced court in Cairns again on further charges.
On June 18, 2018 the Australian Securities and Investments Commission (ASIC) announced it had permanently banned Colin William Hulbert and his companies Channic and Cash Brokers from engaging in credit activity.
It had brought action against Channic, Cash Brokers and Mr Hulbert in the Federal Court for breaching responsible lend ing obligations under the National Credit Act.
ASIC found he was knowingly involved in 73 contraventions of credit legislation and three companies of which Hulbert was the sole director were found to have contravened legislative requirements for participants in the credit industry.
ASIC also found Mr Hulbert demonstrated a disregard for the requirements of the credit legislation and a history of failure to comply with the legislative requirements applicable to participants in the credit industry.
Mr Hulbert provided loans at 48 per cent interest through Channic to vulnerable Indigenous customers to buy second hand cars from Super Cheap Car Sales, a company he also owned. He charged brokerage fees of up to $990.
In April 2017, the Federal Court fined Channic, Cash Brokers and Mr Hulbert a total of $776,000 and ordered the payment of ASIC’s costs of $420,000 after finding that Channic and Cash Brokers breached their responsible lending obligations.
Of that total amount Mr Hulbert was personally fined $220,000.
The court also ordered Mr Hulbert to pay $47,699 in compensation to affected consumers.
All those amounts were unpaid and in March 2018, ASIC ordered Channic and Cash Brokers to be wound up.
A former director of Cash Lenders, Mr Hulbert later became an employee at Cash Lenders where his wife, who is not accused of any wrongdoing, remains a director.
Mr Hulbert appeared in Cairns Magistrates Court on Tuesday charged with engaging in conduct that contravenes the requirements of a banning order and engaging in credit activities without a license.
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions following an investigation by ASIC.
In addition his company Cash Lenders Pty Ltd faces two charges of concealing books relevant to an investigation, and a further charge of engaging in credit activities without a license.
ASIC alleges company books were altered to remove information relevant to their investigation.
The matter will be heard again on June 13 and Mr Hulbert was granted bail on his own undertaking.