Buy Now, Pay Later Firm Gets Slapped with Sanction from ASIC

Issuers of consumer products are required by ASIC to explain the conditions and limitations of their products and to specify the target market, including how the products will be monitored and reviewed, as well as assessing whether or not the products are in line with customers' actual needs and financial circumstances.

Complying with Stop Order

Humm Group acknowledged the sanction, stating that it is closely working with ASIC to address the concerns. They are committed to complying with the requirements of the interim stop order, restricting them from providing the buy now, pay later service to new customers.

The company clarified that they will continue to serve their existing customers currently on the buy now, pay later scheme, which is the core of their business model. Humm Group operates several affiliated businesses, including Flexirent, and their branded buy now, pay later product.

Internal Struggles and Resignations

The Humm Group's leadership team underwent internal conflicts, particularly following the thwarting of plans to sell consumer finance assets worth $335 million to Australian finance lender Latitude last year. The plan entailed $35 million, plus 150 million shares from Latitude, which did not push through due to the founder's objection.

An uncertain environment ensued, resulting in the resignation of the company's chair, Christine Christian, earlier this year. Furthermore, the chief executive officer, Rebecca James, who joined the board in July last year, has announced that she will exit the business effective June 1. She will remain in her position until May 31, offering a one-month transition period to support incoming CEO, Stuart Grimshaw.

Performance and Stock Movement

As of Humm's last trade, their shares were valued at 42 cents, a 48% drop from their year-ago high of 81 cents.

Published:Saturday, 27th May 2023
Source: Paige Estritori

Share this news item:

Finance News

Clear

Uncovering the Impact of Unsolicited Solar Sales on Consumers 04 Jul 2025: Paige Estritori In a concerning revelation, Australian retiree Christine Hirchfield shares her ordeal with an unsolicited solar installation that turned into a financial nightmare. Despite her initial enthusiasm for cheaper energy bills and a greener home, the project remains incomplete more than a year later. Consumer groups are now advocating for a nationwide prohibition on deceptive sales practices that target vulnerable consumers like Ms Hirchfield. - read more

Australian Online Retail Sees Continued Growth in May Amidst Nationwide Spending Surge 03 Jul 2025: Paige Estritori Australian online retail sales experienced a modest rise in May, as consumers continued to invest in fashion, games, and toys. According to the latest figures from the National Australia Bank, there was a 0.7% increase in online sales for the month, compared to a 1.1% growth in April. Over the past year, Australians have spent approximately $63 billion on online retail purchases. - read more

Pay Boosts and Policy Changes: A Closer Look at Financial Updates for Australian Workers 03 Jul 2025: Paige Estritori The starting days of the new financial year bring significant changes for Australian workers, particularly those on minimum wage. As of Tuesday, the minimum wage will rise by 3.5 per cent, increasing hourly earnings to $24.95, or $948 weekly. This adjustment also affects award wages and comes as a response to rising living costs, outpacing current inflation rates. - read more

US Dollar Faces Historic Decline Amid Trump’s Tariff Policies 03 Jul 2025: Paige Estritori The US dollar has experienced an unprecedented decline, marking its worst first-half performance since 1973. Concerns surrounding President Donald Trump's tariff policies have intensified, leading to a substantial drop in the value of the world's primary reserve currency. Specifically, the dollar weakened by 10.7% against a basket of major trading partners' currencies in the first six months of the year, reminiscent of Nixon's era when the dollar was untethered from gold. - read more

Auditor Deregistered After Brite Advisers Collapse 30 Jun 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has deregistered auditor David Makowa, previously of DM Advisory Services, due to his role in the downfall of financial advice firm Brite Advisers. This decision follows Makowa's acceptance of a court-enforceable undertaking in which he agreed to surrender his auditor registration permanently, pledging never to re-apply. - read more