Sky Auto Finance Limited; Annu Kandola; Kuldeep Singh

The Commission filed civil proceedings in the High Court against Sky Auto Finance Limited (Sky Auto Finance) alleging breaches of the Credit Contracts and Consumer Finance Act 2003 for failing to make reasonable inquiries as to whether borrowers could make payments under consumer credit contracts without suffering substantial hardship and failing to keep records of inquiries. In addition, we alleged that Sky Auto Finance failed to provide adequate disclosure to borrowers (both at the outset of the credit contract, and during the repossession process). The Commission has also filed proceedings against Sky Auto Finance’s sole director and senior manager under section 59B of the Credit Contracts and Consumer Finance Act for failing to exercise due diligence to ensure Sky Auto Finance complied with its duties and obligations under the Act. The enforcement action follows an investigation into Sky Auto Finance’s responsible lending practices. In the proceedings the Commission is seeking declarations, pecuniary penalties and statutory damages.