Motor Finance Wizard in hot water

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Do you have a car loan or lease through Motor Finance Wizard?

Find out if you have been affected and what you need to know.

ASIC has taken action against Motor Finance Wizard for failing to adequately check income and expenses of customers before signing them up to loans and leases.

Motor Finance Wizard who offer loans and leases for secondhand vehicles has been found negligent and accepted an enforceable agreement with ASIC to refund $11 million worth of refunds and write-off’s to 1,511 customers who were approved for a loan between 1 July 2010 and 16 July 2014.

They have also been ordered to pay $100,000 to a community benefit program.

Motor Finance Wizard are also required to engage an independent expert to review it’s current business operations and report their findings to ASIC.

ASIC has found that they have breached their responsible lending obligations by not adequately verifying customers expenses and income, therefore entering into contracts that were unsuitable or that customers couldn’t afford.

ASIC is also requiring Motor Finance Wizard to reassess each customers ability to make payments. Customers are to be given the option of whether they want to stay with the loan or terminate their loan.

If customers elect to keep their lease they are also said to be given the option to keep their car at the end of the lease.

How do you know if you are entitled to a refund or not?

Motor Wizard finance will be contacting all of their affected customers via phone, email or mail.

However if you signed a contract with them between 1st July 2010 and 16th July 2014 and haven’t been contact you can contact them on 13 22 75 and investigate if you are due a refund or not.

Financial Hardship

If you have suffered additional financial hardship due to not being able to afford your loan you may apply for additional funds and should contact Motor Wizard Finance or ASIC.

For more information you can contact the ASIC Moneysmart website.

How customers rate Jacaranda

Motor Finance Wizard in hot water Overall rating: 4.8 out of 5 based on 57 reviews.

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Fast & Safe Loans

Small Personal Loan

Loan Amount

Minimum
$300


Maximum
$2,000

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Terms

Minimum
12 Months


Maximum
12 Months

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Costs

Up to 20% Establishment Fee
+ monthly fee up to 4%

Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.

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Medium Personal Loan

Loan Amount

Minimum
$2,100


Maximum
$4,600

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Terms

Minimum
13 Months


Maximum
24 Months

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Costs

Annual Percentage Rate (APR) is 48%
Comparison Rate is 67.41% per annum.

This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 48%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest*) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $2,732.56 (reducing interest*) = $7,632.56 total repayable over 24 months with weekly installments of $73.39.

* Reducing intertest means that the 48% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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Large Personal Loan

Loan Amount

Minimum
$5,000


Maximum
$10,000

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Terms

Minimum
13 Months


Maximum
24 Months

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Costs

Annual Percentage Rate (APR) is 21.24%
Comparison rate is 48% per annum.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Invoice Icon

Examples

Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $2,027.80 (Interest) = $7,027.80 total repayable over 18 months with weekly installments of $90.10.

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

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