Australian Finance Direct Limited v Director of Consumer Affairs Victoria

The High Court of Australia considered an appeal by Australian Finance Direct Limited (AFD) against a decision of the Director of Consumer Affairs Victoria. The dispute concerned whether AFD, a company that provided a service of facilitating loan applications, was acting as a credit provider or a credit assistance provider under the *Credit Act 2001* (Vic). The Director had issued a notice under the Act requiring AFD to hold a licence, which AFD challenged.

The central legal issue before the High Court was the proper interpretation of the definitions of "credit provider" and "credit assistance provider" within the *Credit Act 2001* (Vic) and whether AFD's activities fell within the scope of these definitions. Specifically, the Court had to determine if AFD, by connecting consumers with lenders and assisting in the loan application process, was providing credit itself or merely assisting others to obtain credit.

The High Court held that AFD was not a credit provider because it did not provide credit to consumers. Instead, it facilitated loan applications by acting as an intermediary between consumers and lenders. The Court reasoned that the Act distinguished between those who provide credit and those who provide assistance in obtaining credit. AFD's role was to assist consumers in finding suitable lenders and completing the necessary documentation, but the actual credit was provided by the lenders themselves. Therefore, AFD was providing credit assistance and was not required to hold a credit provider's licence.