Money3 Ordered to Pay $1.55M Penalty for Responsible Lending Breaches
Summary
The Federal Court ordered Money3 Loans Pty Ltd to pay penalties of $1.55 million for breaching responsible lending obligations when providing car finance. The Court 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 based on bank statement transaction data it held. In one instance, Money3 also failed to make reasonable inquiries about the borrower's requirements and objectives. ASIC commenced proceedings against Money3 on 17 May 2023. Justice McElwaine stated these failures justify significant pecuniary penalties as a deterrent to ensure they are not repeated.
“The Federal Court has ordered Money3 Loans Pty Ltd (Money3) to pay penalties of $1.55 million for breaching responsible lending obligations when providing car finance to vulnerable consumers.”
Credit licensees providing car finance and personal loans should review their loan assessment procedures against the specific conduct the Court found problematic: failure to make reasonable inquiries about living expenses and failure to verify those expenses using bank statement transaction data held by the lender. The $1.55M penalty signals that courts will impose significant pecuniary penalties for these failures even absent evidence of systemic misconduct beyond the specific loans identified.
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What changed
The Federal Court ordered Money3 Loans Pty Ltd to pay a penalty of $1.55 million for breaching responsible lending obligations under the National Consumer Credit Protection Act when providing car finance to consumers. The Court found that for five loans between May 2019 and February 2021, Money3 failed to make reasonable inquiries about or verify borrowers' living expenses based on bank statement transaction data it held. In one instance, Money3 also failed to make reasonable inquiries about the borrower's requirements and objectives.
Car finance providers and other credit licensees should review their loan assessment procedures to ensure they make reasonable inquiries about and verify borrowers' living expenses based on actual transaction data. Justice McElwaine noted these failures undermine the purpose of responsible lending obligations and justify significant penalties as a deterrent to ensure they are not repeated by Money3 or other licensees.
Penalties
$1.55 million penalty
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Print Share The Federal Court has ordered Money3 Loans Pty Ltd (Money3) to pay penalties of $1.55 million for breaching responsible lending obligations when providing car finance to vulnerable consumers.
In September 2025, the Court 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 based on bank statement transaction data it held (25-198MR).
In one instance, the Court also found that Money3 failed to make reasonable inquiries about the borrower’s requirements and objectives.
ASIC Chair Joe Longo said, ‘This penalty reflects the contraventions the Court found in relation to Money3’s misconduct.
‘Responsible lending cases like this one are challenging but important to take on, given the seriousness of the allegations raised by consumer advocates and the alleged impacts on individuals involved,’ the Chair said.
Justice McElwaine said, ‘These matters justify significant pecuniary penalties as a specific deterrent to Money3 to ensure that they are not repeated, but also generally so that all licensees understand the importance of the inquiry and verification steps.
‘The failures were serious and they undermine the very purpose of the licensee responsible lending obligations,’ His Honour said.
The Court will determine costs at a later date.
Downloads
Australian Securities and Investments Commission v Money3 Loans Pty Ltd (Penalty) [2026] FCA 506
Background
Money3 provides personal loans and consumer vehicle finance through direct, broker and dealer channels within Australia. A significant amount of Money3’s business is with consumers who are unable to access a traditional bank loan for a variety of reasons.
ASIC commenced proceedings against Money3 on 17 May 2023 (23-126MR).
ASIC acknowledges the assistance provided by consumer representatives and affected borrowers in providing evidence to ASIC.
ASIC has a 2026 enforcement priority related to misconduct exploiting consumers facing financial difficulty, including predatory lending practices. ASIC has enduring enforcement priorities targeting misconduct impacting First Nations people and misconduct involving a high risk of significant consumer harm, particularly conduct targeting financially vulnerable consumers.
If you believe you have been provided with an unsuitable loan, you can make a complaint to your lender. If you are not satisfied with the response, you can lodge a complaint with the Australian Financial Complaints Authority (www.afca.org.au).
If you need help, you can speak to a free and confidential financial counsellor at the National Debt Helpline on 1800 007 007 or through Mob Strong debt helpline.
Moneysmart has information about loans and alternatives and where to find help with managing debt.
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