The Australian Securities & Investments Commission (ASIC) reported that the Federal Court has delivered judgment in its civil penalty proceedings against Money3 Loans Pty Ltd, finding deficiencies in Money3’s responsible lending process for five car finance loans to borrowers largely or solely reliant on Centrelink payments. The Court found Money3 failed to make reasonable inquiries about or verify borrowers’ living expenses based on bank statement transaction data, and in one instance failed to make reasonable inquiries about a borrower’s requirements and objectives. However, the Court rejected ASIC’s allegations that Money3 failed to assess whether the loan contracts were unsuitable for the borrowers and that Money3 entered them into unsuitable loans. It also rejected claims that Money3 failed to take reasonable steps to ensure its representatives complied with credit legislation or that representatives were not adequately trained and competent. On ASIC’s case that Money3 relied on an internal guide with minimum living expense figures that were arbitrary or unrelated to borrowers’ real expenses, the Court found ASIC did not establish the figures were arbitrary or that Money3 should have used a benchmark such as the Household Expenditure Measure. ASIC said it is considering the judgment, and a case management hearing is listed for 30 October 2025.
Australian Securities & Investments Commission 2025-09-09
Australian Securities & Investments Commission case sees Federal Court find Money3 failed living expense inquiries but reject unsuitable loan allegations
The Federal Court found Money3 Loans Pty Ltd deficient in its responsible lending process for five car finance loans to borrowers reliant on Centrelink payments, due to inadequate inquiries into borrowers' living expenses. However, the Court dismissed ASIC's claims that Money3 entered into unsuitable loans or failed to ensure compliance with credit legislation. ASIC is reviewing the judgment, with a case management hearing scheduled for 30 October 2025.