The Australian Securities & Investments Commission (ASIC) reported that the Federal Court has ordered RAMS Financial Group Pty Ltd to pay an AUD 20 million penalty after it admitted widespread compliance failures in arranging home loans. The Court found RAMS breached its obligations as an Australian Credit Licensee and contravened the Credit Act between June 2019 and April 2023. The contraventions included dealing with unlicensed referrers, failing to have adequate arrangements to ensure customers were not disadvantaged by conflicts of interest, failing to supervise representatives to ensure compliance with credit laws (including inadequate policies and procedures and failures to investigate misconduct), and failing to ensure authorised credit activities were engaged in efficiently, honestly and fairly. Justice Shariff also found RAMS lacked effective processes and controls following internal findings of possible misconduct, including instances of franchise staff submitting false payslips from non-existent employers and altering customers’ liabilities and expenses to ensure loan applications were approved, exposing consumers to risks of unsuitable loans, hardship and default-related fees or charges. RAMS, a wholly owned subsidiary of Westpac Banking Corporation, operated through a franchise network that was fully wound down by 6 August 2024, while Westpac and RAMS continue to support existing customers. ASIC commenced proceedings on 4 June 2025, RAMS admitted liability, and the firm has remediated customers who suffered detriment.

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