Predatory Lending: An ASIC focus in 2024

One of ASIC's major priorities for 2024 is cracking down on credit providers engaging in predatory lending and high-cost credit provided to consumers and small businesses. ASIC is concerned that business models operated by such credit providers have been designed to avoid consumer credit protections. ASIC will pursue directors personally where there has been alleged corporate misconduct.

What is Predatory Lending?

Predatory lending refers to unfair practices that benefit the lender and hinder the consumer's ability to repay debt, resulting in significant harm to consumers and investors. The NCCP Act and associated regulations aim to ensure that lenders do not provide unsuitable loans to consumers.