ASIC has taken action against the franchisees of a household goods rental provider, after banning the firm's director for disregarding the responsible lending conduct obligations imposed by the National Credit Act. Earlier this year, the corporate regulator cancelled the credit licence of Mobile Rentals, a Victorian-based outfit, and banned director Ajay Kaushik from the credit business for five years.Following this action, the Australian Securities and Investments Commission undertook a surveillance of all Mobile Rentals' franchisees, the majority of which were unlicensed. A review of the franchisees' consumer files found they took none of the required responsible lending steps when entering into rental agreements.The franchisees operated out of Geelong, Ballarat and metropolitan Melbourne."The targeting of poor and vulnerable consumers by rogue operators will not be tolerated," said ASIC deputy chairman Peter Kell.The franchisees' directors have been excluded from the industry by entering into written undertakings with ASIC stating they will not engage in credit activities for three-and-a-half years. The franchisees will also be required to write to all their customers telling them their agreements have been terminated, they owe no further money, and they now own their rented goods.This action follows similar moves against the directors and franchisees of appliance rental company Zaam Rentals. ASIC banned two directors of the firm and cancelled the company's credit licence for failing to comply with the responsible lending obligations. The company deliberately targeted vulnerable people in remote Aboriginal communities in Mildura, Victoria, and in surrounding areas in New South Wales.