ASIC filed a personal report against the Australian Securities and Investments Commission on Friday and said that it started legal action against Australia and New Zealand Banking Group for home lone referrals under its 'introducer program'.
That regulator said between June 2016 and March 2018, ANZ breached consumer protection credit laws by accepting consumers and documents from introducers and other unlicensed individuals, when this was not allowed.
Introducer Program (HIV) is a reward-based program that has been used by companies and community organisations to pay a borrowers and members with home loans needs to ANZ.
ASIC concerned that some loans may have been granted by ANZ based on false information, said Deputy Chair Sarah Court. Some consumers may have entered into home loans beyond their ability to pay.
A statement added that from 2015 to June 2020, more than 50,000 loans were transferred to ANZ through the introducer program making more than a sum of 18 billion dollars and thus up to a year.
ANZ said in an independent statement that it co-operated with ASIC during its investigation, and has also established a customer remediation program, while improving its home loan process and control.
In 2018, a comprehensive survey of Australian lenders and financial institutions has greatly increased since a Royal Commission inquiry in 2018 found widespread shortcomings in the sector. Nevertheless, these companies and regulators have to take swift action.
Last month, the largest lender in Australia, Commonwealth Bank pleaded guilty to 30 criminal charges for mis-selling consumer credit insurance between 2011 and 2015. Last year, the country's largest loan company had pleaded guilty to mis-selling consumer credit insurance at 30 levels between 2011 and 2015.
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