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.
