ASIC is taking finance company SIV Capital to court over alleged breaches of the National Consumer Credit Protection Act.
SIV said in a statement yesterday that it expects ASIC to allege that a number of contracts issued by SIV’s equipment finance subsidiary GoGetta constituted consumer lending without a credit licence, in contravention of the NCCP Act.
It said proceedings would commence “shortly”. SIV said it understands that the Federal Court proceedings are in relation to 10 customers who entered into motor vehicle leases with GoGetta in 2015 and 2016.
ASIC has already accepted an enforceable undertaking from SIV and GoGetta, with the companies committing to a remediation program for affected customers.
SIV Capital is what remains of equipment finance company Silver Chef, which specialised in the hospitality industry. Last year the company reported that it was in breach of debt covenants.
In December, the hospitality finance division was sold to a group of investors led by private equity firm Next Capital. GoGetta went into run-off.
The Next Capital deal was worth A$18.25 million. In June, SIV shareholders approved a capital return of $11.8 million of surplus capital from the sale.
The GoGetta book has run down to around 750 customers.