The Federal Court, in proceedings brought by the Australian Securities and Investments Commission (ASIC), ordered Money3 Loans Pty Ltd to pay AUD 1.55 million in penalties for breaching responsible lending obligations when providing car finance to vulnerable consumers. The Court had previously found that, for five loans entered into between May 2019 and February 2021, Money3 did not make reasonable inquiries about, or verify, each borrower’s living expenses using bank statement transaction data it held. In one instance, Money3 also failed to make reasonable inquiries about the borrower’s requirements and objectives. Justice McElwaine described the failures as serious, said they undermined the purpose of responsible lending obligations, and indicated the penalties were intended to deter both Money3 and other licensees. The Court will determine costs at a later date.
Australian Securities & Investments Commission 2026-04-27
Australian Securities and Investments Commission secures Federal Court order for AUD 1.55 million penalties against Money3 Loans for responsible lending breaches
The Federal Court ordered Money3 Loans Pty Ltd to pay AUD 1.55 million in penalties in proceedings brought by the Australian Securities and Investments Commission for breaching responsible lending obligations in car finance to vulnerable consumers. The Court found that for five loans between May 2019 and February 2021, Money3 failed to make reasonable inquiries into or verify borrowers’ living expenses using bank data it held and, in one case, did not adequately inquire into the borrower’s requirements and objectives.