Defunct Westpac home loan unit RAMS has been hit with a $20 million penalty after admitting to widespread misconduct at its franchises over a four-year period.
A judge has raised concerns about whether an agreed-to $20 million penalty against Westpac’s defunct home loan subsidiary RAMS is enough to deter other lenders from breaking credit rules.
A judge did not need to recuse himself from deciding the penalty in ASIC’s case against Sunshine Loans because his earlier adverse credit findings — far from giving rise to bias concerns — were relevant to the task, the regulator has told the High Court.
ASIC has won banning orders against a Paladin and MacroLend director, with a judge finding investors were enticed by his “entirely fanciful” $1.02 billion valuation of Paladin unit Kradle Software.
The applicant in a class action by former RAMS franchisees can’t intervene in proceedings by ASIC against the defunct Westpac mortgage unit, with a judge finding the outcome of the ASIC case will not affect the class action.
The High Court will hear an appeal by Sunshine Loans, which centres on a judge’s recusal in the corporate regulator’s case over unauthorised fees.
Former franchisees involved in a class action against RAMS are seeking to intervene in ASIC civil penalty proceedings against the defunct Westpac subsidiary.