Australian Securities and Investments Commission v Channic Pty Ltd (No 5) [2017] FCA 363

Australian Securities and Investments Commission v Channic Pty Ltd (No 5) [2017] FCA 363

The appropriate penalties for the respondents are determined by reference to the number and seriousness of contraventions of civil penalty provisions under the NCCP Act, informed by deterrence principles, the nature of the conduct, harm to consumers, need for general and specific deterrence, and application of...

Source-derived case information.

Parties
Applicant: Australian Securities and Investments Commission; First Respondent: Channic Pty Ltd (ACN 141 145 753); Second Respondent: Cash Brokers Pty Ltd (ACN 144 652 951); Third Respondent: Colin William Hulbert
Jurisdiction
Australia
Judgment Date
07 April 2017
Procedural Posture
Civil Penalty Application / Final Judgment and Orders on Penalty
Outcome
Pecuniary penalties imposed; consumer credit contracts set aside; consumers relieved from liability; costs awarded to ASIC.
Legal Topics
Responsible Lending, Pecuniary Penalties, Unconscionable Conduct, Credit Contracts, Civil Penalty Provisions
Consumer Law Regulator and Consumer Protection Commercial Law Responsible Lending Pecuniary Penalties Unconscionable Conduct Credit Contracts Civil Penalty Provisions

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Parties

Australian Securities and Investments Commission

Applicant

Channic Pty Ltd (ACN 141 145 753)

First Respondent

Cash Brokers Pty Ltd (ACN 144 652 951)

Second Respondent

Colin William Hulbert

Third Respondent

Procedural Posture

Civil Penalty Application / Final Judgment and Orders on Penalty

Legal Issues

  1. 1 What is the appropriate pecuniary penalty for contraventions of civil penalty provisions under the National Consumer Credit Protection Act 2009 (Cth)?
  2. 2 Did the respondents contravene responsible lending obligations under the NCCP Act and engage in unconscionable conduct under the ASIC Act?
  3. 3 Should credit contracts be set aside and consumers relieved from liability?

Ratio Decidendi

The appropriate penalties for the respondents are determined by reference to the number and seriousness of contraventions of civil penalty provisions under the NCCP Act, informed by deterrence principles, the nature of the conduct, harm to consumers, need for general and specific deterrence, and application of course of conduct and totality principles; penalties are imposed in amounts held not to be oppressive given all relevant circumstances.

Court Disposition

Pecuniary penalties imposed; consumer credit contracts set aside; consumers relieved from liability; costs awarded to ASIC.

Orders

  • Channic Pty Ltd to pay a pecuniary penalty of $278,000.00 to the Commonwealth.
  • Cash Brokers Pty Ltd to pay a pecuniary penalty of $278,000.00 to the Commonwealth.