Borrow
ASIC appeals Westpac’s ‘responsible lending’ win
The corporate regulator has announced that it has filed an appeal against the recent Federal Court ruling that Westpac had not breached responsible lending provisions in its granting of home loans between 2011 and 2015.

ASIC appeals Westpac’s ‘responsible lending’ win
The corporate regulator has announced that it has filed an appeal against the recent Federal Court ruling that Westpac had not breached responsible lending provisions in its granting of home loans between 2011 and 2015.

At the time, Westpac was found not to be in breach of its obligations by Justice Nye Perram, who said “the act requires a credit provider to ask itself only whether ‘the consumer will be unable to comply with the consumer’s financial obligations under the contract’ or, alternatively, whether the consumer ‘could only comply with substantial hardship’.”
The decision was considered as a test case for the legislation surrounding obligations on credit providers and what actually constitutes the provision of ‘responsible’ lending.
The decision had followed a concession by Westpac that it had granted 100,000 loans “without sufficiently assessing their suitability”.
In announcing the appeal, ASIC commissioner Sean Hughes said that “the Credit Act imposes a number of legal obligations on credit providers, including the need to make reasonable inquiries about a borrower’s financial circumstances, verifying information obtained from borrowers, and making an assessment of whether a loan is unsuitable for the borrower”.
“ASIC considers that the Federal Court’s decision creates uncertainty as to what is required for a lender to comply with its assessment obligation, nor does ASIC regard the decision as consistent with the legislative intention of the responsible lending regime,” he continued.
“For those reasons, ASIC will appeal to the Full Court of the Federal Court,” the commissioner stated.
The ASIC announcement comes less than a week after law firm Slater and Gordon announced it was filing a class action against Westpac subsidiaries BT Funds Management Ltd and Westpac Life Insurance Services Ltd, which alleged that thousands of superannuation members were shortchanged by their funds and not provided with “valuable” service.
About the author

About the author


Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more

Loans
Mortgages slashed 6,777 times in 2020
Record-low interest rates have seen lenders make almost 7,000 cuts to home loans throughout 2020, but mortgage-holders and investors remain disinterested in getting a better rate, new research has rev...Read more

Loans
Aussies urged to avoid holiday debt
Christmas presents, New Year’s drinks, travel plans… December is an expensive time of year, but while the wallet can be on the slim side in January, Aussies are being urged to be careful when turn...Read more

Loans
Consumer groups slam axing of safe lending laws
One hundred and twenty-five organisations have banded together to oppose the federal government’s proposed relaxation of responsible lending laws, arguing it will hurt consumers and the broader e...Read more

Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more

Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more

Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more

Loans
What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you? ...Read more

Loans
Home lending surge shatters records with $24bn in loans
The total value of loan commitments for investor housing rose 6 per cent month-on-month to reach $5.6 billion in November last year, as the property market heated up in the lead-up to Christmas. ...Read more

Loans
Mortgages slashed 6,777 times in 2020
Record-low interest rates have seen lenders make almost 7,000 cuts to home loans throughout 2020, but mortgage-holders and investors remain disinterested in getting a better rate, new research has rev...Read more

Loans
Aussies urged to avoid holiday debt
Christmas presents, New Year’s drinks, travel plans… December is an expensive time of year, but while the wallet can be on the slim side in January, Aussies are being urged to be careful when turn...Read more

Loans
Consumer groups slam axing of safe lending laws
One hundred and twenty-five organisations have banded together to oppose the federal government’s proposed relaxation of responsible lending laws, arguing it will hurt consumers and the broader e...Read more

Loans
‘Most Australians are through the worst’ as mortgage repayments resume
In a positive sign for the Australian economy, nearly 7 in 10 Australians who paused payments due to the COVID-19 pandemic have resumed repaying their mortgages, new figures have shown. ...Read more

Loans
Non-majors announce rate cuts
A number of non-major lenders have announced that they will pass on the full RBA rate cut to all existing variable rate home loan borrowers. ...Read more

Loans
Big 4 cut interest rates
Westpac, CBA, NAB and ANZ have all reduced their fixed rate home loans and some business loans following the Reserve Bank’s reduction of the official cash rate. ...Read more

Loans
What the RBA’s rate cut means for you
The RBA has slashed the official rate cut to a new record low of 0.10 per cent, but what does that mean for you? ...Read more