The Port Augusta branch of popular home appliance lenders Mr Rental has been charged after it was found to be engaging in unconscionable conduct.

The South Australian Mr Rental, a national household goods rental business, targeted Indigenous consumers in the Anangu Pitjantjatjara Yankunytjatjara lands (APY lands) with contracts that were not explained to the non-native English speakers.

The contracts included a provision requiring customers to specifically declare that they were not drunk at the time of leasing.

The Australian Securities and Investments Commission found the Port Augusta Mr Rental guilty after a period of surveillance, finding more than 40 consumers were asked to sign several documents together with a lease agreement, none of which were explained to them and included a ‘customer declaration’ indicating they understood all the paperwork and that they were not intoxicated.

“It is completely unacceptable that these Indigenous consumers have been taken advantage of and subjected to such appalling practices,” ASIC Deputy Chairman Peter Kell said.

“The majority of consumers in the APY lands are living on very low incomes, English is not their first language and they are not familiar with an indefinite lease agreement.”

The consumers' agreements have been terminated, they owe no further money, and they now own their rented goods.

Mr Rental Port Augusta must now notify ASIC and the Governing body of the APY Lands if they intend entering a remote Indigenous community in the future to sign-up more customers.

It is the second case levelled against Mr Rental by ASIC this year, after a finding of unfair contracts led to the lender paying-back about $300,000 to approximately 1,560 consumers.

ASIC has bagged a number of similar cases in its sweep to root-out irresponsible lending and credit provision.

Mobile Rentals, Zaam Rentals, Channic and Cash brokers, Ray Rentals and the overarching Mr Rental Australia Pty Ltd have all been caught out this year.