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13-090MR ASIC accepts enforceable undertaking from Solar Rental Company
Solar Rental Company Pty Ltd, which operates a business renting solar systems to consumers in South Australia, has entered into an Enforceable Undertaking (EU) with ASIC following an investigation.
ASIC found that between 19 October 2011 and 5 May 2012, Solar Rental entered into 239 rental agreements with consumers whilst not holding an Australian credit licence. There were also concerns that the rental agreements did not contain the disclosures required under the National Credit Act.
The EU requires Solar Rental to write to all affected consumers, provide them with the disclosure required under the National Credit Act and offer them the following options:
termination of their rental arrangements with Solar Rental;
purchase of the solar systems at the price paid at the time of the rental agreements less rental amounts already paid; or
entry into a new rental agreement with Solar Rental that is compliant with the National Credit Act.
ASIC Commissioner Peter Kell said 'This case is a reminder to the industry that it is a fundamental responsibility of those engaging in credit activities to be fully aware of their obligations under the National Credit Act.'
'I would encourage consumers to check ASIC's registers to ensure the person or company they are dealing with is licensed, and to contact ASIC or visit our MoneySmart website if in doubt'.
Solar Rental was granted a credit licence on 18 October 2012.
The rental agreements entered into by Solar Rental are credit contracts regulated by the National Consumer Credit Protection Act 2009 (National Credit Act).
ASIC is responsible for regulating the provision of consumer credit in Australia under the National Credit Act. The National Credit Act regulates credit contracts and most consumer leases. Generally persons who enter into credit contracts and consumer leases are required to hold an Australian credit licence.