Coast payday lenders fail to pay up

OPERATORS of a Gold Coast payday lender will be forced to front court again after failing to pay $730,000 in fines.

Corporate regulator ASIC has commenced proceedings for recovery of unpaid fines against Fast Access Finance Pty Ltd, Fast Access Finance (Beenleigh) Pty Ltd and Fast Access Finance (Burleigh Heads) Pty Ltd.

The companies were fined for using the purported sale and purchase of diamonds to provide loans, a model the court found was designed to conceal the true nature of the transaction, which was the provision of credit.

Consumers who were seeking loans from $500 to $2000 entered into contracts they assumed were traditional loans.

As a result they were charged interest as high as 1000 per cent instead of the legal 48 per cent or lower.

The Federal Court found the companies breached consumer credit laws by engaging in credit activities without holding a credit licence. ASIC has applied to the Supreme Court of Queensland for orders to wind up the companies.