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.
The Court’s decision relates to five loans entered into between May 2019 and February 2021. For each of these loans, Money3 was found not to have made reasonable inquiries about, or verified, the borrowers’ living expenses, despite holding bank statement transaction data. In one of the five cases, the Court also found that Money3 failed to make reasonable inquiries into the borrower’s requirements and objectives.
The proceedings were commenced by the Australian Securities and Investments Commission (ASIC) on 17 May 2023. ASIC pursued the matter in relation to Money3’s conduct in providing consumer vehicle finance to vulnerable borrowers, many of whom are unable to access traditional bank loans.
Court findings and penalties
In September 2025, the Court found that Money3 had contravened responsible lending obligations in connection with the five loans. The breaches arose from failures to adequately use the information available in bank statements to assess borrowers’ living expenses and, in one case, failures to sufficiently understand the borrower’s requirements and objectives.
Justice McElwaine stated that the matters justified “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 judge described the failures as serious and said they undermined the purpose of licensee responsible lending obligations.
ASIC Chair Joe Longo said the penalty reflected the contraventions the Court found in relation to Money3’s misconduct. He noted that responsible lending cases of this kind are challenging but important to pursue, given the seriousness of allegations raised by consumer advocates and the alleged impacts on affected individuals.
Regulatory and market context
Money3 provides personal loans and consumer vehicle finance within Australia through direct, broker and dealer channels. A significant portion of its business is with consumers who cannot obtain traditional bank loans for various reasons.
ASIC has identified misconduct exploiting consumers facing financial difficulty, including predatory lending practices, as an enforcement priority for 2026. The outcome in this case underscores the regulator’s focus on responsible lending standards in segments of the market serving financially vulnerable borrowers.
The Court will determine the question of costs at a later date.
