The Australian Securities and Investments Commission (ASIC) filed civil penalty proceedings with the federal court, alleging that Resimac Group (ASX:RMC) unit Resimac failed to ensure that it provided appropriate care when responding to hardship applications as required by its credit license between Jan. 1, 2022, and Feb. 15, 2024, according to a Wednesday statement from the regulator.

The regulator alleged that Resimac imposed a "one-size-fits-all" approach to hardship applications, typically requesting extensive standard information from vulnerable customers without considering "whether all of it was relevant and reasonably necessary."

When the customers did not provide any of the standard information, the firm allegedly summarily rejected their hardship applications.

In a Wednesday filing with the Australian bourse, Resimac acknowledged that its past practices regarding hardship notices "could have been better," and the firm apologized for the practices. It is developing a financial contribution program for affected customers, including refunds of fees and interest.

The firm added that it enhanced its processes to give greater support to customers facing financial difficulties. It said that it cooperated with ASIC's investigation and will continue its cooperation.

Resimac was one of 10 lenders ASIC reviewed in 2023 to understand how they are supporting customers experiencing financial hardship.

Resimac's shares fell 4% in recent trading on Wednesday.