The Australian Securities & Investments Commission has launched a review of the motor vehicle finance sector in March 2025, aiming to assess and lift consumer outcomes, particularly for borrowers in regional and remote locations, including First Nations communities. The work will examine lender, broker and intermediary conduct, including how defaults, hardship and dispute resolution are handled. The review will cover the practices of seven lenders and will expand to include additional brokers and intermediaries as the project progresses. ASIC flagged that it will take enforcement action where appropriate and reiterated that misconduct in used car finance sold to vulnerable consumers remains a key enforcement priority in 2025, noting existing proceedings against Money3 Loans Pty Ltd for alleged responsible lending breaches and against Diamond Wheels, Keo Automative and a former director for allegedly providing unlicensed car loans with excessive interest rates. ASIC plans to publish initial high-level insights from the review in the second half of 2025, followed by a more detailed public report.
Australian Securities & Investments Commission 2025-03-19
Australian Securities & Investments Commission launches review of motor vehicle finance focusing on outcomes for regional and First Nations consumers
The Australian Securities & Investments Commission (ASIC) is reviewing the motor vehicle finance sector to improve consumer outcomes, focusing on regional and remote borrowers, including First Nations communities. The review will assess lender, broker, and intermediary conduct, especially regarding defaults, hardship, and disputes. Seven lenders will be examined initially, with more brokers and intermediaries to follow. Enforcement action will target misconduct in used car finance for vulnerable consumers. Existing proceedings involve Money3 Loans Pty Ltd and others. Initial insights will be published in the second half of 2025, followed by a detailed report.