Australian Securities and Investments Commission v Cash King Pty Ltd

The Australian Securities and Investments Commission (ASIC) brought proceedings against Cash King Pty Ltd in relation to misleading and deceptive conduct in the provision of financial services. ASIC sought declarative relief under sections 12DA and 12DB of the Australian Securities and Investments Commission Act 2001 (Cth), alleging that Cash King engaged in conduct that contravened the statutory prohibitions against misleading or deceptive conduct in trade or commerce. ASIC further sought orders restraining Cash King from engaging in such conduct in the future. The court was required to determine whether the declarations sought by ASIC were appropriate based on the evidence presented and whether Cash King should be restrained from further such conduct.

The court found that ASIC had the authority to accept the enforceable undertaking provided by Cash King, and it was appropriate for the court to note the terms of this undertaking. The court concluded that the declarations sought by ASIC were appropriate to make based on the material before the court, and that Cash King should be restrained from further such conduct in the form of the proposed orders. The court was satisfied that the declarations were warranted given Cash King's activities in arranging and providing credit facilities, which involved dealing in financial products and providing financial services. The court found that Cash King had engaged in misleading conduct by increasing the establishment fees for credit facilities without informing its customers and misrepresenting the fees required by lenders.

The court issued orders restraining Cash King from making certain misrepresentations in relation to fees and charges associated with credit facilities, and from misrepresenting the amounts required to discharge loans. The court also dismissed the Amended Originating Process and Statement of Claim, ordering each party to pay their own costs. The court accepted the enforceable undertaking from ASIC as within its powers and appropriate for the circumstances.