The Australian Securities and Investments Commission (ASIC) has issued a final stop order preventing Indy-C-Fashion Accessories Pty Ltd (Indy-C) from offering Centrepay credit arrangements to consumers at its Katherine store. The regulator found that Indy-C failed to meet its obligations under the design and distribution obligations (DDOs), including providing a compliant Target Market Determination (TMD) to ensure the suitability of its financial products for consumers.

Indy-C’s credit arrangements, which allowed customers to purchase clothing and household goods through deductions from Centrelink benefits, were found to be offered without proper consideration of the consumers’ financial needs, objectives, or situations. ASIC Deputy Chair Sarah Court highlighted concerns that these arrangements particularly affected vulnerable First Nations consumers.

“Indy-C provided credit arrangements without ensuring they were aligned with the financial needs and objectives of the consumers. Despite being given additional time to comply, the company failed to produce a compliant TMD or take reasonable steps to address the deficiencies,” Court said.

The DDOs require businesses offering financial products to identify the target market, outline conditions for distribution, and ensure the product is suitable for that market. Indy-C’s repeated failure to comply led to the indefinite stop order, effectively halting its ability to offer new Centrepay credit arrangements.

This regulatory action follows an interim stop order issued by ASIC on September 30, 2024, which temporarily prevented Indy-C from continuing these arrangements while the regulator assessed its compliance. Although Indy-C submitted several draft TMDs in an attempt to address ASIC’s concerns, the drafts were found inadequate.

In addition to the ASIC order, Services Australia has suspended Indy-C from its register of businesses approved to use Centrepay deduction arrangements, further limiting its operations.

ASIC emphasized its commitment to protecting vulnerable consumers and ensuring financial products are distributed responsibly. “This is the second time ASIC has taken such action to stop businesses from offering credit arrangements that fail to meet their obligations. We will continue to use our powers to prevent harm to vulnerable consumers,” Court added.

First Nations consumers who have been impacted can seek assistance through ASIC’s Indigenous Outreach Program or contact Mob Strong Debt Helpline for financial hardship support.

Indy-C retains the right to appeal ASIC’s decision to the Administrative Review Tribunal.