Legal action launched against Australian companies accused of overcharging the vulnerable for electronics and whitegoods

Asic has alleged in a statement of claim that a Rent4Keeps subsidiary overcharged customers an average of $2,400. Photograph: Rent4Keeps

The corporate regulator has launched legal action against two companies it has accused of charging excessive interest rates on loans taken out by vulnerable people to buy household essentials, including washing machines and mobile phones.

In lawsuits filed in the federal court on Tuesday, the Australian Securities and Investments Commission accused the two companies, Rent4Keeps and Layaway Depot, of disguising loans as rental contracts in order to avoid the 48% a year cap on interest contained in credit law.