Australian Securities and Investments Commission v The Cash Store Pty Ltd (in liquidation) (No 2) [2015] FCA 93

Australian Securities and Investments Commission v The Cash Store Pty Ltd (in liquidation) (No 2) [2015] FCA 93

Given the scale and severity of contraventions by TCS and AFA found in the sample, the statistical certainty of widespread breaches, and lack of meaningful remedial action, the maximum penalty for each statutory category is appropriate for the first period, with a reduced penalty for the second period; for unconscionable conduct in selling unsuitable insurance, the maximum penalty is appropriate; penalties must reflect deterrence, seriousness and proportionality.

Jurisdiction
Australia
Judgment Date
19 February 2015
Procedural Posture
Civil Penalty Proceeding / Penalty and Costs Hearing
Outcome
Pecuniary penalties imposed; orders made for penalties and costs.
Legal Topics
['pecuniary Penalty' 'contraventions of Responsible Lending Provisions' 'unconscionable Conduct' 'penalty Fixing Principles' 'systemic Contraventions' 'credit Insurance Sale']
['consumer Law' 'credit Law' 'corporations Law'] ['pecuniary Penalty' 'contraventions of Responsible Lending Provisions' 'unconscionable Conduct' 'penalty Fixing Principles' 'systemic Contraventions' 'credit Insurance Sale']

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Procedural Posture

Civil Penalty Proceeding / Penalty and Costs Hearing

Legal Issues

  1. 1 ['Appropriate pecuniary penalties for breaches of responsible lending obligations under National Consumer Credit Protection Act 2009 (Cth)' 'Appropriate penalty for unconscionable conduct contravention under s 12CB of Australian Securities and Investments Commission Act 2001 (Cth)' 'Principles governing fixing penalties for multiple civil penalty contraventions']

Ratio Decidendi

Given the scale and severity of contraventions by TCS and AFA found in the sample, the statistical certainty of widespread breaches, and lack of meaningful remedial action, the maximum penalty for each statutory category is appropriate for the first period, with a reduced penalty for the second period; for unconscionable conduct in selling unsuitable insurance, the maximum penalty is appropriate; penalties must reflect deterrence, seriousness and proportionality.

Court Disposition

Pecuniary penalties imposed; orders made for penalties and costs.

Orders

  • ['First respondent (TCS) to pay $1,100,000 pecuniary penalty to Commonwealth for contravention of s 12CB of ASIC Act.' 'First respondent (TCS) to pay $10,725,000 pecuniary penalty to Commonwealth for contraventions of Parts 3-1 and 3-2 of Credit Act, allocated as: $5,500,000 for Part 3-1 (first period), $1,650,000...