Australian Securities and Investments Commission v Cash Store Pty Ltd (in liquidation)

The case of Australian Securities and Investments Commission v Cash Store Pty Ltd (in liquidation) involved the Australian Securities and Investments Commission (ASIC) suing Cash Store Pty Ltd (TCS) for various breaches of consumer law in relation to payday loans. The court had to decide whether TCS contravened sections of the National Consumer Credit Protection Act 2009 (Cth) by failing to make reasonable inquiries about customers' financial situations, failing to verify provided information, and not providing credit guides, as well as whether TCS engaged in unconscionable conduct under the Australian Securities and Investments Commission Act 2001 (Cth). The court found that TCS had systemic failures in its practices and processes, resulting in numerous contraventions of the Credit Act. TCS admitted deficiencies in its compliance arrangements but later claimed to have fully complied with the Credit Act, which the court found to be contradicted by the evidence.

The court's reasoning was that TCS had not taken reasonable steps to ensure compliance with the Credit Act, as evidenced by the systemic failures identified in the sampled contracts. TCS failed to make requisite inquiries, verify information, and conduct adequate preliminary assessments. The court held that TCS's practices and processes remained deficient even after the introduction of revised policies and procedures. The systemic nature of the breaches meant that TCS had contravened multiple provisions of the Credit Act in relation to a significant number of contracts. The court found that TCS's conduct amounted to unconscionable behaviour under the ASIC Act. The court scheduled a hearing on the penalty and costs of the proceeding and reserved the decision on costs.