Responsible Lending Obligations Remain Firmly in ASIC’s Sights May 20, 2026

In Australian Securities and Investments Commission v Money3 Loans Pty Ltd (Penalty) [2026] FCA 506, the Federal Court imposed a $1.55 million penalty against lender Money3 for failures in its responsible lending processes under the National Consumer Credit Protection Act 2009 (Cth).

Money3, a significant participant in the motor vehicle finance industry, was found to have failed to make reasonable inquiries about, and take reasonable steps to verify, the financial circumstances of six borrowers before approving loans. In one instance, the Court also found Money3 failed to properly assess a borrower’s requirements and objectives. ASIC alleged these failures were not isolated incidents, but reflected broader systemic issues within the business, including deficiencies in employee training, competency and internal assessment processes.

A key issue in the proceeding was Money3’s reliance on internal expenditure benchmarks and assessment matrices (referred to as the “Money3 Product Guides”) to determine borrowers’ living expenses. While the Court accepted that benchmark tools can be used in some circumstances, it found they were inappropriate in this case because more accurate information regarding actual expenditure was readily available through customers’ bank statements and transaction data.

The Cour held that loans were approved without an adequate assessment of suitability, exposing vulnerable borrowers to unsuitable lending outcomes.

Why does this matter for businesses?

This decision is another reminder that regulators are increasingly scrutinising not only misconduct itself, but the systems, governance frameworks and internal processes that allow it to occur. For businesses operating in lending, finance and consumer credit, compliance frameworks must operate effectively in practice, not simply exist on paper. Businesses should ensure:

• staff are appropriately trained and supervised;
• verification processes are consistently applied; and
• internal assessment tools are regularly reviewed to ensure they reflect real customer circumstances.

ASIC continues to focus heavily on governance, accountability and consumer protection across the financial services sector.

marshalls+dent+wilmoth lawyers regularly advises businesses on regulatory compliance, governance and risk management obligations.