Finance company to pay fine
The Victorian Civil and Administrative Tribunal ordered Australian Finance Direct to pay a fine of $100,000 after breaching the consumer credit code. AFD agreed to the fine. The fines arise from AFD's conduct in offering loans for people to attend seminars run by the National Investment Institute and Capital Holdings Group.
NII was one of the companies associated with Henry Kaye, one of the "property spruikers" associated with the lending boom of the early 2000s. AFD and the other companies would advance loans to people in order to attend expensive training courses run by Kaye on how to get rich investing in property developments. The lenders would "hold back between 10 per cent and 40 per cent of loans.
Hanover Finance of New Zealand owns Australian Finance Direct, which continues to promote loan consolidation. VCAT first found the loans were in breach of the code in 2004.
Source: The Sheet