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Oak Capital ‘strongly refutes’ ASIC allegations

Oak Capital ‘strongly refutes’ ASIC allegations
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The lender has come under fire lately after ASIC alleged it engaged in “inappropriate lending practices”. Now, Oak Capital is refuting these claims.

As previously discussed by Broker Daily, ASIC commenced legal proceedings against Oak Capital after allegedly engaging in “unconscionable conduct to avoid the National Credit Code.”

ASIC alleges Oak Capital made up to 47 loans totalling over $37 million under a model designed to avoid the application of the Code and the National Consumer Credit Protection Act 2009, between 7 March 2019 and 4 October 2023.

“As a result of loans being treated as unregulated, we allege Oak Capital deprived its clients of important consumer protections, including responsible lending obligations, the right to make a hardship application and protection from being charged excessive fees and interest,” said ASIC deputy chair Sarah Court.

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“These protections are critical in the current financial climate where borrowers are more likely to be at risk of serious financial hardship. ASIC will continue to take action where we consider business practices are designed to avoid consumer credit protections.”

Now, the lender has responded, and is denying the allegations.

“Unfortunately, Oak Capital has become a target of this investigation with ASIC bringing legal proceedings against Oak Capital … The legal proceedings relate to 47 loans made by Oak Capital between November 2019 and March 2023. Due to confidentiality requirements, individual loan details cannot be disclosed. However, all 47 loans have been discharged,” said Oak Capital.

“Oak Capital strongly refutes all ASIC’s allegations and we will defend our position. All our loans comply with relevant laws and industry standards, including the 47 illustrative examples relied upon by ASIC. We will continue to offer responsible, mid-tier non-banking lending solutions as we have done proudly for the last decade.”

“The legal proceedings will not impact our commitment to valued customers and investors, nor our operations. Oak Capital has responded to all ASIC requests relating to this issue since November 2022. We respect ASIC’s role in maintaining industry standards.”

In its statement, Oak Capital also refuted all claims of predatory lending.

“In regards to recent media coverage, Oak Capital refutes all allegations of predatory lending practices. We have always complied with the law and best practices.”

“The Oak Capital Team will keep our customers and investors informed throughout proceedings and we look forward to a timely and positive resolution.”

With proceedings ongoing, Broker Daily will continue to update with any relevant information.

Related: ASIC sues lender over ‘unconscionable conduct’

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