The Australian Securities and Investments Commission (ASIC) has secured a Federal Court order requiring Sunshine Loans Pty Ltd to pay AUD 5.5 million in civil penalties for charging unlawful fees to consumers who rescheduled loan repayments without being in default. The court also ordered the lender to pay ASIC’s costs. The penalty follows an April 2024 judgment finding that Sunshine Loans entered into more than 670,000 small amount credit contracts containing a prohibited AUD 35 amendment fee between July 2016 and November 2020. The lender charged the fee more than 12,000 times and received payment more than 8,000 times, collecting almost AUD 300,000. Repayment amendment fees were not among the charges permitted under the National Credit Code. Sunshine Loans stopped charging the fees in November 2020 following ASIC intervention. Justice Derrington found the contraventions serious and deliberate. He also found that the lender’s unmeritorious litigation arguments indicated a poor compliance culture that needed to be reflected in the penalty. Civil penalties were available only for contraventions from March 13, 2019, when the relevant provisions became subject to civil penalties. Sunshine Loans received approximately AUD 113,000 in unlawful fees during that penalty period.
ASIC secures AUD 5.5 million penalty against Sunshine Loans for prohibited loan rescheduling fees
The Australian Securities and Investments Commission (ASIC) has obtained a Federal Court order imposing AUD 5.5 million in civil penalties on Sunshine Loans Pty Ltd for prohibited AUD 35 repayment rescheduling fees. The lender collected almost AUD 300,000 through fees charged to borrowers who were not in default. The court found the breaches serious and deliberate and also ordered Sunshine Loans to pay ASIC’s costs.