Money3 is a licensed financial services provider subject to enforcement action for breaching responsible lending obligations under Australian financial services laws, making this an enforcement action against a non-bank lender providing consumer credit.
The enforcement action concerns consumer lending breaches, as Money3 failed to comply with responsible lending requirements when providing car finance and personal loans to vulnerable consumers.
Specialism
The Federal Court imposed a $1.55 million penalty on Money3 for breaching responsible lending obligations, which constitutes a formal enforcement financial penalty action by ASIC.
The breaches involved failures to make reasonable inquiries about borrowers' living expenses and requirements, directly impacting vulnerable consumers' access to fair lending terms, which is core customer protection.
2026-04-27 15:41:51·kgurnani@vixio.com
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TITLE: Australian Securities and Investments Commission Orders Money3 to Pay $1.55 Million Penalty for Responsible Lending Breaches
BODY:
On 26 March 2026, the Federal Court ordered Money3 Loans Pty Ltd (Money3) to pay penalties of $1.55 million for breaching responsible lending obligations under Australian financial services laws. The Australian Securities and Investments Commission (ASIC) brought proceedings against Money3 on 17 May 2023, following the lender's failures to comply with responsible lending requirements when providing car finance to vulnerable consumers.
The Court found that Money3 breached its responsible lending obligations in relation to five loans entered into between May 2019 and February 2021. Specifically, Money3 failed to make reasonable inquiries about or verify borrowers' living expenses based on bank statement transaction data it held. In one instance, the Court also found that Money3 failed to make reasonable inquiries about a borrower's requirements and objectives. Justice McElwaine noted that the failures were serious and undermined the purpose of licensee responsible lending obligations, warranting significant pecuniary penalties as both specific and general deterrents.
ASIC Chair Joe Longo stated that responsible lending cases are challenging but important given the seriousness of allegations and impacts on individuals involved. Money3 provides personal loans and consumer vehicle finance through direct, broker, and dealer channels, with a significant portion of its business directed at consumers unable to access traditional bank loans. The penalty reflects ASIC's 2026 enforcement priority targeting misconduct exploiting consumers facing financial difficulty, including predatory lending practices, and its enduring priorities targeting misconduct impacting financially vulnerable consumers.
The Federal Court will determine costs at a later date. Consumers who believe they have received unsuitable loans can lodge complaints with their lender or, if unsatisfied, with the Australian Financial Complaints Authority.
**Reference:**
Australian Securities and Investments Commission v Money3 Loans Pty Ltd (Penalty) [2026] FCA 506
26-084MR Federal Court orders Money3 to pay $1.55 million penalty for responsible lending breaches | ASIC Newsroom Print Share Twitter Facebook LinkedIn Email 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.