The Federal Court has ordered GoGetta Equipment Funding Pty Ltd (GoGetta) pay a $750,000 penalty for engaging in unlicensed consumer leasing following proceedings commenced by ASIC in August 2020.
ASIC alleged, and GoGetta admitted, that between 30 April 2015 and 21 December 2016:
- GoGetta entered into rental agreements with ten consumers who hired motor vehicles wholly or predominantly for a personal, domestic or household purpose, in contravention of section 29 of the National Credit Act; and
- GoGetta demanded and received fees and other payments on 295 occasions, with respect to those ten customers, in contravention of section 32 of the National Credit Act.
The Court found GoGetta had contravened the National Credit Act because each rental agreement constituted a consumer lease under the Act, and GoGetta did not hold an Australian Credit Licence allowing it to enter into consumer leases or charge fees.
In reaching the penalty decision, Justice Davies took into account agreed facts and penalty submissions made by ASIC and GoGetta.
Her Honour said, ‘The contravening conduct in this case was serious. The contraventions are properly characterised as arising from a systemic failure by GoGetta from the outset to have an effective process for verifying business use in the conduct of its commercial rental business.’
Her Honour also found GoGetta only took steps to address the issue when ASIC took action and notified GoGetta of its investigation in 2017, although GoGetta was aware of the possibility that it was contravening the National Credit Act by leasing to consumers without a licence in 2016.
ASIC Commissioner Danielle Press said, ‘ASIC commenced this action because it considered that the contraventions by GoGetta, while not deliberate, were serious, due to GoGetta’s failure to have appropriate systems in place to ensure that they did not lease to consumers.
‘All firms conducting a consumer leasing or rent-to-buy business must ensure they have the appropriate authorisations from ASIC, and the systems, governance and controls in place to ensure they comply with the law and provide the required consumer protections to their customers.’
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Background
ASIC commenced proceedings against GoGetta on 11 August 2020 (20-183MR).
As part of ASIC’s action, on 7 August 2020, ASIC also accepted a Court Enforceable Undertaking (CEU) from GoGetta to ensure remediation of affected consumers. As at 7 April 2021, GoGetta has remediated consumers by providing over $9.1 million in refunds, write offs and interest waivers.
GoGetta is a subsidiary of SIV Capital Ltd (formerly Silver Chef Ltd). SIV Capital Ltd is a business equipment finance company. SIV Capital Ltd sold its hospitality business on 3 December 2019 but provisioned for consumer remediation.
GoGetta acquired assets, such as engineering equipment, with the intention of making a profit by leasing the assets for business purposes.
This matter came to ASIC’s attention after receiving complaints from GoGetta consumers, including through Legal Aid organisations representing vulnerable and disadvantaged consumers.
GoGetta ceased accepting applications for motor vehicle leases from 6 October 2017 and did not enter into any new motor vehicle leases from 28 February 2018. On 28 February 2018, SIV Capital announced its decision to exit its entire GoGetta asset financing business and to run-down the GoGetta business.