Thorn Australia Pty Ltd's Radio Rentals has been found guilty of contravening its responsible lending obligations by the Federal Court of Australia. Thorn has been ordered to pay a A$2 million penalty, along with ASIC's court and investigation costs of $240,000.Proceedings were initiated by ASIC, following an investigation into whether Thorn's leasing practices took into account people's capacity to pay.The Court found Thorn failed to make the necessary inquiries and take steps to verify the financial situation of its customers; and failed to conduct a proper assessment of the suitability of the leases it provided. This decision, announced via media release yesterday, formalises a casual agreement, made in January between the parties after Thorn had admitted to four contraventions by Radio Rentals of the National Credit Act for each of the 275,060 consumer leases it entered into in from 23 January 2012 to 1 May 2015.The subsequent package of outcomes agreed to in January included $6.1 million in refunds to customers and write-offs of default fees, and an additional $13.8 million in customer refunds for taking excess lease payments.Radio Rentals said it was providing refunds for affected customers as part of an Enforceable Undertaking to ASIC, and would contact all customers eligible for a refund or write-off by 7 November 2018.