Australian Securities and Investments Commission v Kobelt

The Australian Securities and Investments Commission (ASIC) filed proceedings against Lindsay Kobelt, who runs a general store in Mintabie in the Anangu Pitjantjatjara Yankunytjatjara (APY) lands in far north South Australia. ASIC alleges that Kobelt contravened the National Consumer Credit Protection Act 2009 (Cth) by selling motor vehicles to customers and providing credit for those sales without holding a licence to do so. ASIC further alleges that Kobelt engaged in unconscionable conduct by requiring customers to provide their debit cards and personal identification numbers (PINs) as a condition of his provision of credit, and sometimes deducting amounts from their accounts in repayment of debts owed to him. ASIC seeks various declarations, injunctions, penalties, and orders for the publication of corrective statements. Kobelt applied for further and better particulars of ASIC's statement of claim before filing his defence, and ASIC has provided some particulars voluntarily. Justice White considered the adequacy of the statement of claim and the need for particulars under r 16.45 of the Federal Court Rules 2011 (Cth). The Court found that Kobelt was entitled to particulars concerning which customers ASIC relied on for certain allegations and the facts upon which ASIC relied to allege that Kobelt continued to engage in the contravening conduct. The Court ordered ASIC to provide those particulars, vacated previous orders, set new deadlines for filing an amended statement of claim, a defence, and a reply, and fixed a new directions hearing date. The Court also ordered that each party bear their own costs of the interlocutory application.