Radio Rentals to pay out $20 million in refunds
REFUNDS for Radio Rentals customers have been secured by the Australian Securities and Investments Commission (ASIC).
In an effort to address past poor conduct and protect future customers, a package of regulatory outcomes against Thorn Australia Pty Ltd's (Thorn) consumer leasing businesses, which includes Radio Rentals, RR and Rentlo Reinvented, has been announced.
This will include a $6.1m refund to customers, write-offs of default fees and an additional $13.8m in customer refunds of excess lease payments.
Civil penalty proceedings lodged by ASIC with the Federal Court of Australia saw Thorn admit to four ocntravetions by Radio Rentals of the National Credit Act.
This was in respect of 278,683 consumer leases between January 1, 2012 to May 1, 2015.
Civil penalty proceedingsToday, ASIC has lodged civil penalty proceedings with the Federal Court of Australia, in which Thorn has admitted to four contraventions by Radio Rentals of the National Credit Act in respect of each of the 278,683 consumer leases which it entered into in the period from 1 January 2012 to 1 May 2015.
These contraventions relate to the responsible lending obligations of lease providers which require them to make inquiries and take steps to verify the consumer's financial situation, in order to assess whether the lease is suitable for the consumer, before it is entered into.
ASIC and Thorn will file a Statement of Agreed Facts in the Federal Court , and will make joint submissions that the appropriate penalty to be paid by Thorn is $2 million. The penalty amount payable by Thorn will be determined by the Court.