NIMBLE ORDERED TO REPAY $1.5M TO BORROWERS

Written on the 23 March 2016 by Nick Nichols

NIMBLE ORDERED TO REPAY $1.5M TO BORROWERS

PAYDAY lender Nimble Australia has been forced to refund more than 7000 customers a total of $1.5 million following a probe into its activities by the corporate watchdog.

The Australian Securities and Investments Commission says its investigation was triggered by concerns that Nimble was not adhering to responsible lending obligations.

ASIC says the investigation found that Nimble had not properly assessed the financial circumstances of many customers before approving loans, arguing that the algorithms the company relied upon didn't take the financial information of consumers into account.

The Gold Coast-based Nimble, which was previously known as Cash Doctors, was also accused of failing to assess the habits of clients who had sought repeat loans from other payday lenders within a short period of time.

"Even where repeat loans were properly identified, Nimble did not take sufficient or appropriate steps as required by law before providing a loan to the consumer," ASIC says.

As a result, Nimble has been ordered to pay about 7000 consumers more than $1.5 million through a consumer remediation program overseen by Deloitte Touche Tohmatsu.

It also has been ordered to make a $50,000 contribution to Financial Counselling Australia.

ASIC has also ordered that Nimble undertake an independent external review of its systems and processes and to report the findings to the commission.

"This is a significant outcome for financially vulnerable consumers," says ASIC deputy chairman Peter Kell.

"This outcome is a further example of ASIC's strong focus on the payday lending sector.

"This remains a high priority area for ASIC, and we expect the industry to continue to lift its game."

ASIC has acknowledged that Nimble has made significant changes to its processes and systems since the investigation was launched.

Nimble CEO Sami Malia says the company regrets any inconvenience caused to those customers affected and that it has worked 'co-operatively with ASIC to quickly fix the issues through system enhancements'.

"Nimble has identified and promptly resolved these issues," Malia says.

"They affected around 1.2 per cent of loans written during the period from July 1, 2013, to July 22, 2015.

"These application assessment issues were entirely unintended and were resolved in collaboration with ASIC. There have been no adverse findings against Nimble."

Meanwhile, ASIC says consumers are expected to be contacted shortly in relation to the planned refund process which is expected to take six months to complete.

 


Author: Nick Nichols

Latest News

NEW CLASS OF EDUCATION NURTURES ENTREPRENEURS OF TOMORROW

THE rise in youth unemployment has affirmed the importance of entrepreneurship education, and south-east Queenslan...

DUET GROUP SUBJECT OF $7.3 BILLION TAKEOVER OFFER

HONG Kong's Cheung Kong Infrastructure has launched a $7.3 billion cash bid for one of Australia's largest en...

G8 SHARES BUOYED BY FORECAST PROFIT RECOVERY

CHILDCARE centre operator G8 Education (ASX:GEM) has revealed it is on track to post a pre-tax profit of up to $16...

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter