Not a good look, but the resulting fines and legal costs are not likely to be very material in the context of 50m NPAT business. The Aboriginal element also not great. Dissapointing.
Here is an egregious example of fines a payday lender and its financier. SVR is not even in the same ballpark as these jokers. Max penalties are $1.1m for the worst violations in each instance.
"The Court found TCS breached a total of seven separate provisions of the Credit Act, and that AFA breached six provisions. TCS was also held liable for the breaches of AFA by reason of its having been knowingly concerned in the breaches by AFA, pursuant to section 169 of the National Credit Act.The maximum penalty for a corporation for breaching responsible lending and credit guide laws is $1.1million for each contravention. In respect of the National Credit Act breaches, the Court ordered that TCS and AFA pay penalties of $10.725 million and $7.15 million respectively."
https://asic.gov.au/about-asic/news-centre/find-a-media-release/2015-releases/15-032mr-federal-court-orders-record-penalty/anyways, I find it ironic that despite operating as a payday lender for years, SVR avoided ASIC litigation, yet when it pivots to the far less murky secured car financing product it gets pinged for responsible lending. Sentiment and recessions fears have already smashed the stock, this ASIC issue is unfortunately one more reason for investors to steer clear
(20min delay)