Medium Loans
This Target Market Determination (TMD) has been prepared by Sunshine Loans Pty Ltd ACN 092 821 960 (Us, We, Our) Australian Credit Licence 390995 in compliance with our Design and Distribution Obligations under Part 7.8A of the Corporations Act 2001 (DDOs). It applies to our Medium Amount Credit Contract (MACC) product.
1. The Target Market for Our MACC Product
The Target Market our MACC product is consumers who:
- need amounts from $2,001 to $2,500;
- need or require:
- to pay for infrequent and sometimes unforeseeable expenses that cannot be met from their regular or usual disposable income but not for paying regular, ongoing ordinary household expenses such as utilities unless it is to pay accumulated arrears or unusually high amounts due to special circumstances;
- finance for the purchase of major items of personal property or
- one-off discretionary items such as travel and special events;
for personal non-business purposes.
- are interested in a loan term no longer than 6 months;
- are not interested in providing security over any property for their loan;
- can afford the repayments on the product without hardship;
- have a reliable net income greater than $700 a week ($1,400 a fortnight) from legal and verifiable sources;
- want contracts which are clear and easy to understand with fixed interest and easily identifiable fees and charges.
- want easy access to customer services to discuss payments, hardship and terms of the contract;
- want the funds quickly;
- want the loan application process to be simple, online, and quick.
Consumers who are excluded from the Target Market for our MACC product are consumers whose:
- net income is less than $700 a week ($1,400 a fortnight).
- purpose for the proposed loan is the payment of regular, ongoing ordinary household expenses such as utilities unless it is to pay accumulated arrears or unusually high amounts due to special circumstances.
- purpose for the loan is a business purpose
2. The Key attributes of Our MACC Product
The key attributes of our MACC product are:
- Loan amounts from $2,001 to $2,500
- We charge interest at a maximum Annual Percentage Rate of 48% per annum*.
- There are no other account keeping or other regular monthly fees.
- The minimum term is 63 days and the maximum term is 182 days.
- We charge an Establishment Fee of $400.
- We do not require any security over property for the our loans.
- Transparent, legible and easily understood contract documents, including a financial table and standard loan terms.
- Ready access to customer services and hardship policy.
- Fast on-line application and approval process.
3. The key attributes of Our MACC Product meet the Target Market.
The key attributes of our MACC product meet the needs, objectives and financial situations of consumers in its target market because:
- our MACC product:
- provides easy access to medium term finance for consumers for their infrequent and sometimes unforeseeable expenses or for purchases of personal property. loan amounts are closely related to the amounts required by the target market consumers in their loan applications.
- terms match the consumers‘ needs, requirements and objectives, and financial situation;
- has a fixed interest rate, a one-off establishment fee and no other regular monthly fee.
- the repayments on our MACC loans are affordable for the consumer without hardship.
- the application process is online and can be completed quickly.
- our contract documents are short, legible and easy to understand.
- we provide ready access to online and telephone customer service.
- we do not require any security over property for our loans.
4. Distribution Channels and Conditions
- All our Distribution channels present the product appropriately to consumers as follows:
- Our website which contains:
- No misleading information
- All relevant disclosures and warnings required by law;
- An easy to follow application process during which the consumer is given informed choices at every stage about:
- the information we require about their needs and objectives and personal financial situation in order to assess their application;
- how that information is to be obtained either:
- directly from the customer; or
- with the customer’s consent from third parties such as credit reporting agencies;
- how that information is to be used for the application or with their express consent for marketing purposes;
- All third party referrers are:
- vetted before being allowed to present our product;
- subject to regular monitoring;
- required to enter into referral agreements with us;
- required to report regularly to us on the:
- customers who apply to them but which are not referred to us; and
- reasons for the exclusion of some customer applicants
- We do not rely on any pre-assessment of suitability by any third party.
- We do not make any unsolicited offers of credit.
- We have adopted the following Voluntary Distribution Conditions to ensure that our product is distributed appropriately to its target market:
- No loans to any customer whose net income is less than $700 a week ($1400 a fortnight).
- No loans for the purpose of paying regular, ongoing ordinary household expenses such as utilities unless it is to pay accumulated arrears or unusually high amounts due to special circumstances.
- No loans for business purposes;
No loan will be offered to any customer which does not satisfy the above Distribution Conditions.
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All our products are distributed in compliance with our responsible lending obligations so that no loan will be provided to a customer who does not demonstrate the capacity to make the loan repayments required by any proposed loan from us without hardship.
5. Review Triggers
We will review this TMD if the following occurs in relation to this product:
- The number of customers, as a percentage of the total number of active customers, in default at the end of the quarter is 10% higher than that for the previous quarter.
- The number of all complaints (whether referred to AFCA or not) from approved MACC loans as a percentage of the total number of Active customers at the end of the quarter is 10% higher than that for the previous quarter.
- If the number of variations to payment schedules due to hardship is greater than 3% of the total number of loans entered into in the previous quarter.
- The number of defaults or hardship applications before the first 3 scheduled payments for a loan as a percentage of the total number of active customers at the end of the quarter is 10% higher than that for the previous quarter.
Communication from the following external sources will be Trigger Events:
- AFCA if either
- Complaints resolved against us by AFCA increase by 10% as a percentage of the number of active customers in a three (3) month period; or
- AFCA identifies a “systemic issue”;
- ASIC if it identifies a systemic issue;
- Community based consumer organisations if they raise a systemic issue.
The responsible manager will collect, assess and review all the above data every three (3) months. If any of the above Trigger Events occur, this will trigger a review as if it were a Periodic Review as below.
6. Periodic Scheduled Reviews
- We will conduct Periodic Reviews every six (6) months whether or not a trigger event has occurred in the previous quarter.
- The responsible manager will conduct all reviews of this TMD.
- The responsible manager will report to our board of directors within two weeks of conducting a review as to:
- Whether any trigger events have occurred.
- What factors may have caused these trigger events to occur including external factors not related to the design and distribution of our product such as seasonal variations.
- Which of the follow actions we should take:
- No change if all of our DDOs as published above are being met;
- The product needs a redesign;
- A new distribution condition is required; or
- The product must cease to be offered.
7. Significant Dealings
If at any time, we detect that more than 5% of the consumers receiving our product within a three (3) month period are not within our Target Market, we shall report this to ASIC as a Significant Dealing within ten (10) business days.
