The Australian Securities and Investments Commission (ASIC) has welcomed record court penalties imposed on consumer credit companies and credit insurers.

After the Federal Court awarded a record $18.98 million penalty against payday lender The Cash Store and loan funder Assistive Finance, insurers associated with the case refunded premiums.

CGU, Accident and Health International and Allianz made refunds to consumers, according to the regulator’s enforcement report for the past six months.

ASIC also cancelled the Australian financial services licence of foreign exchange and “contracts-for-difference” broker Rainbow Legend after finding the company falsely promoted an insurance scheme that did not exist in Australia.

The regulator banned Sydney insurance broker Warren Gelle for three years after finding his company did not forward premiums to insurers and did not maintain premium funding in trust.

It permanently banned Leroy Bowmaker of All Class Insurance Brokers from engaging in credit activity after finding he misused client premium funds, made dishonest representations to underwriters and submitted false premium loan applications.

AAMI paid a $20,400 penalty for “misleading” car insurance advertising.