Regulatory Alerts2025-08-12
Federal Court Orders Rent4Keeps and Darranda to Pay $7.4 Million Penalty for Overcharging Vulnerable Consumers
ASIC secured a Federal Court order imposing a $7.4 million penalty on Rent4Keeps and its franchisee Darranda Pty Ltd for unlawfully overcharging vulnerable consumers on essential household goods. The court found that Darranda disguised credit contracts as leases to bypass the 48 per cent annual interest rate cap and failed to disclose key contract details, while Rent4Keeps was knowingly involved in these breaches. This enforcement action highlights the consequences for operators servicing financially vulnerable clients who fail to adhere to statutory safeguards and obligations under the National Credit Code.
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