Content of Penalty:
ASIC has permanently banned former credit representative Mr Colin William Hulbert, of Cairns, Queensland, from engaging in credit activity.
Mr Hulbert was the sole director of Channic Pty Ltd (Channic), Cash Brokers Pty Ltd (Cash Brokers) and Ang Hulbert & Associates Pty Ltd (AHA). Channic and Cash Brokers both operated a used car dealership in Cairns. Cash Brokers assisted consumers to obtain loans from Channic at an interest rate of 48% to purchase vehicles from AHA. This was in addition to charging brokerage fees of up to $990. Channic did not assess whether the loans were suited to the consumers' requirements.
ASIC had previously brought action against Channic, Cash Brokers and Mr Hulbert in the Federal Court for breaching their responsible lending obligations under the National Credit Act. In April 2017, the Federal Court fined Channic, Cash Brokers and Mr Hulbert a total of $776,000 for breaching consumer credit laws and awarded compensation to affected consumers.
ASIC has concluded that Mr Hulbert is likely to contravene credit legislation in the future and has banned him from engaging in credit activity permanently. ASIC found that between December 2008 and June 2012, Mr Hulbert failed to comply with his obligations under credit legislation, in that:
- he was knowingly involved in 73 contraventions of credit legislation;
- three companies of which Mr Hulbert was the sole director were found to have contravened legislative requirements applicable to participants in the credit industry;
- he demonstrated a disregard for the requirements of the credit legislation; and
- he demonstrated a history of failure to comply with the legislative requirements applicable to participants in the credit industry.