The decision in ASIC v The Cash Store (in
liquidation) [2014] FCA 926 (Cash Store case) primarily
focused on the responsible lending obligations of payday lender,
the Cash Store under the National Consumer Credit Protection
Act 2009. To view the Federal Court decision
click here.
Other matters were also decided in the Cash Store case including
those in relation to an allegation that the Cash Store had engaged
in unconscionable conduct in contravention of section 12CB of the
Australian Securities and Investments Commission Act 2001
(ASIC Act) in selling consumer credit insurance (CCI) to customers
who took out payday loans.
In the decision, His Honour Justice Davies was scathing of the
practices of the Cash Store in selling CCI. At paragraph 94 of the
judgement he stated:
