ASIC bans payday lender

The Australian Securities and Investment Commission has banned the director of a small payday lending business that was operating without a credit licence.

ASIC has banned Victor Manatakis, of Doncaster, Victoria, from engaging in credit activities for five years. Manatakis was director of Billpal Pty Ltd, which was the operator of Cashpal, a short-term lending business.

Billpal engaged in credit activities without an Australian credit licence during 2011 and breached the National Consumer Credit Protection Act.

ASIC commissioner Peter Kell said: "People in the credit industry need to be aware of the licensing requirements."