Consumer Action Law Centre has applauded the corporate regulator for securing an enforceable undertaking (EU) against second-hand car financier Motor Finance Wizard (MFW). The EU will see the problem trader providing $11 million in refunds and write offs to more than 1,500 former customers.
The Australian Securities and Investments Commission (ASIC) took action after finding that MFW had not checked the income and expenses of customers before signing them up to a car lease or loan. MFW provides consumer leases and loans for second hard cars, mainly to people on Centrelink and low incomes.
Consumer Action CEO Gerard Brody said the organisation had been concerned about Motor Finance Wizards’ unfair contracts and lending practices for many years.
‘Motor Finance Wizard has a history of irresponsible lending and targeting people on low incomes with high cost loans and leases. We are ecstatic to hear Motor Finance Wizard is finally being held to account.’
Former customers may be entitled to a refund or write-off if they signed up for a lease or loan from MFW between 1 July 2010 and 16 July 2014. MFW will be re-assessing whether these customers could afford their loans or leases, and will be contacting eligible customers.
If you signed up to a MFW loan or lease in this period, you should contact MFW on 13 22 75 to see if you are eligible for a refund. If you are unhappy with MFWs response, you can make a complaint to the Credit and Investments Ombudsman (www.cio.org.au).
For further information about MFW refunds, you can visit https://www.moneysmart.gov.au/tools-and-resources/news/motor-finance-wizard-refunds.