The Australian Securities and Investments Commission (ASIC) has received a “court-enforceable” decision addressing the operations of Elepay (Elevare Pay Easy Pty Ltd), a buy now pay the later provider (BNPL).
According to a statement issued by ASIC, Elepay failed to Target Market Determination (TMD) before offering loans to consumers.
TMDs seek to make certain that customers receive a financial product that is appropriate for their needs.
ASIC states that Elepay admits that from October 2021 to March 2023, it did not have TMDs for seven credit products for consumers. Reportedly, Elepay lent $13.748 million to 1,658 retail clients during this period.
ASIC has agreed to accept an offer by Elepay to accept a decision that it will engage an independent expert to report on:
- Whether Elepay’s clients who were issued with one of its products after 5 October 2021 fell within the target market of clients identified in the TMDs,
- The fees and charges that have been paid to Elepay by clients who fall outside of the target market specified in the TMDs,
- Whether Elepay’s TMDs comply with the requirements of the DDO and, if not, what steps Elepay needs to take to rectify this.
If clients have been served incorrectly, Elepay must notify these customers, cease charging these individuals, and refund any fees already paid.
From 5 October 2021 to 15 March 2023, Elepay did not hold an Australian credit licence. On 18 October 2023, following the commencement of ASIC’s investigation, Elepay applied to ASIC to obtain an Australian credit license. On 23 January 2024, ASIC granted Elepay a licence.
