Joycelyn Morton, chairperson of Radio Rentals parent Thorn Group Limited, has stepped down from her role on the Board and will be replaced by non-executive director David Foster, the company has said.

Morton, who had been chairman since August 2014, also signalled her intention to leave the Board as a non-executive director, but will stay on until a replacement is announced.

The Board thanked Morton for her years of service to the company, noting her recent guidance over a settlement with corporate watchdog ASIC.

Thorn agreed to pay a $6.1 million in remediation of fees and expenses to customers earlier this month over alleged historic breaches of responsible lending practices.

Foster brings financial services experience to the role, having served as the CEO of Suncorp Bank from 2008 until 2013 before joining Thorn Group’s Board.

Morton said she was pleased to be able to hand over the chair to Foster, outlining her belief that he will provide the “strong leadership Thorn requires”.

“During my time as Chair we achieved a great deal under difficult circumstances. We have a refreshed Board, new leadership team, completed the ASIC settlement and appointed a new CEO who will commence on 15 February. I therefore believe this is the right time for me to hand over to a new Chair,” Morton said.

Thorn announced the appointment of Tim Luce as its CEO last August.