20/07/2015 - 13:51

ASIC bans two Perth finance brokers

20/07/2015 - 13:51

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The corporate watchdog has permanently banned local brokers Eric-John Pryor and Peter McDonald from providing credit and financial services after being found to have engaged in misconduct when brokering car financing for a business in Victoria Park.

The corporate watchdog has permanently banned local brokers Eric-John Pryor and Peter McDonald from providing credit and financial services after being found to have engaged in misconduct when brokering car financing for a business in Victoria Park.

The Australian Securities and Investments Commission banned the Get Approved Finance brokers after they were found to have misled 12 clients with poor credit histories into believing they would be approved for vehicle finance if their loan applications were supported by guarantors.

“Rather, Mr Pryor and Mr McDonald prepared loan applications solely in the names of the proposed guarantors without those persons’ knowledge or consent,” ASIC said.

“As a result of Mr Pryor and Mr McDonald’s conduct, the lender financed over $315,000 in automotive loans (with interest $470,000) which it otherwise was unlikely to have approved.”

ASIC also found that the pair had personally profited from the sale of vehicles to three clients in circumstances where they had sourced the vehicle, artificially inflated the sales price and failed to disclose their interests in the transaction.

They were also found to have fabricated insurance policies in relation to five loans to mislead the lender about the existence of mandatory comprehensive insurance policies being in place for those clients.

ASIC deputy chairman Peter Kell said the banning highlighted ASIC’s strong approach to ensuring that rogue operators were removed from the industry.

“ASIC will not tolerate this type of behaviour. Those who engage in dishonest and misleading conduct will be removed from the industry,” he said.

The watchdog found Mr Pryor and Mr McDonald were not fit and proper individuals to engage in credit activities, were likely to contravene credit legislation and likely to contravene the financial systems law.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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