ASIC commences action against GoGetta Equipment Funding Pty Ltd for unlicensed consumer leasing

The Australian Security and Investments Commission (ASIC) has commenced civil penalty action in the Federal Court of Australia against Queensland-based GoGetta Equipment Funding Pty Ltd (GoGetta) for unlicensed conduct.

Announced last month, ASIC alleges that:

• Between 30th April 2015 and 9th December 2016, GoGetta entered into 10 rental agreements with consumers who hired the motor vehicles wholly or predominantly for a personal, domestic or household purpose
• GoGetta did not obtain a declaration from any of the consumers that the vehicle was hired for business purposes
• Each rental agreement was a ‘consumer lease’ to which Part 11 of the National Credit Code (Sch 1 to the National Credit Act) applied, and
• GoGetta contravened the National Credit Act because it did not hold a licence under that Act authorising it to enter into the rental agreements and charge the consumer fees under those agreements.

ASIC advised that GoGetta’s conduct meant that consumers were not afforded the consumer protections available under the National Credit Act, including the right to access hardship assistance and to make a complaint to an external dispute resolution (EDR) scheme.

ASIC’s action also includes the acceptance of a Court Enforceable Undertaking (CEU) from SIV Capital Ltd and GoGetta to ensure remediation of affected consumers.

ASIC is seeking pecuniary penalties against GoGetta for contravening:
• Section 29 of the National Credit Act, the prohibition against engaging in credit activities without a credit licence, and
• Section 32 of the National Credit Act, the prohibition against charging a fee from a consumer when engaging in an unlicensed credit activity.

The maximum penalty for a single contravention of each of sections 29 and 32 of the National Credit Act prior to 30th July 2015 was $1,800,000 and prior to 30th June 2017 was $2,100,000.

The first case management hearing is yet to be listed by the Court.

Court Enforceable Undertaking and remediation program
GoGetta, which has also been active in leasing equipment in the fitness sector, is a subsidiary of SIV Capital Ltd (formerly Silver Chef Ltd).

ASIC has also accepted a CEU from GoGetta and SIV Capital Ltd admitting that GoGetta contravened sections 29 and 32 of the National Credit Act on multiple occasions from 1 July 2014.

The CEU requires SIV Capital Ltd and GoGetta to implement a remediation program to compensate customers who entered into a consumer lease for a motor vehicle with GoGetta from 1 July 2014.

SIV Capital Ltd and GoGetta will automatically remediate approximately 207 customers who are at high risk of having entered into a consumer lease, in the amount of around $1.9 million.

All other affected customers, from a pool of over 5,000 customers, will be contacted or invited to have their circumstances reviewed to participate in the remediation program. SIV Capital Ltd has provisioned over $5 million for consumer remediation.

GoGetta will also remove default listings and waive any arrears on affected rental agreements. The remediation program will be overseen by an independent remediation consultant who will periodically report to ASIC on its progress and GoGetta and SIV Capital Ltd’s compliance with the program.

Under the CEU, GoGetta will become a member of the Australian Financial Complaints Authority (AFCA) until completion of the remediation program. If consumers are not satisfied with the remediation offered to them, they can lodge a complaint with AFCA.

The remediation program will be free of cost. GoGetta and SIV Capital Ltd will manage the remediation program and more information will be made available on GoGetta's website.

GoGetta in fitness
In 2012, GoGetta advised that "GoGetta Equipment Funding provides commercial equipment funding to the fitness industry with our GoGetta Rent.Grow.Own® rental solution, a 12 month rental agreement", advising "GoGetta has helped many fitness business owners to realise the dream of owning their own business." 

Update: 15th October 2020
Australasian Leisure Management has been advised that GoGetta has been winding down since February 2019.