An appliance rental company in north-western Victoria has had its credit licence cancelled by the Australian financial regulator for deliberately targeting vulnerable people in remote aboriginal communities.

Zaam Rentals was renting household goods to poor indigenous people near Mildura that they were to pay for with their Centerlink benefits.

The Australian Securities and Investments Commission (ASIC) launched an investigation into the company after families dealing with Zaam spoke out on late last year.

ASIC has now banned the company's director and former director from credit activities for at least the next four years and has cancelled Zaam's credit license.

The investigation found the company failed to make inquiries into the financial circumstances of its customers and did not make necessary disclosures in its contracts.

ASIC commissioner Peter Kell says Zaam targeted people with a limited understanding of contracts and a minimal capacity to make repayments.