The Australian Securities and Investments Commission has placed a stop order on a credit-for-rent loan because the lender has not done enough to ensure it would not be used by financially vulnerable consumers. ASIC said it issued an interim stop order on One Card Credit’s Scorebuilder and Safetynet loan after it found deficiencies in its target market determination. It said it was particularly concerned as the loan targets consumers looking to use credit to pay their rent.  The loan is a continuing credit contract that can be used to pay one week’s rent, which is then repaid over four fortnightly instalments. “Consumers seeking to use credit to pay rent, a basic cost of living, are at heightened risk of being financially vulnerable,” ASIC said. The product’s target market determination says consumers excluded from the loan include those who cannot afford the minimum repayments without hardship, are financially vulnerable or are living in public housing. But ASIC said it did not consider the distribution conditions sufficient to identify and exclude these consumers. Missed repayment information showed that a significant proportion of consumers using the loan had missed at least one payment. The interim stop order is valid for 21 days. ASIC expects One Card Credit to take steps to ensure compliance with its design and distribution obligations by appropriately identifying a target market for its loan and putting in place appropriate controls for its distribution. It has the power to make a final stop order if its concerns are not addressed. ASIC has issued 23 stop orders using its design and distribution obligation powers and five remain in place.