meta_id 3100993

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