The Risks of Irresponsible Lending

ASIC alleges that Money3 failed to properly assess the financial situations of certain borrowers before approving loans for the purchase of second-hand vehicles. With many consumers relying solely on Centrelink payments or low incomes, these loans were deemed unsuitable and plunged borrowers into financial hardship.

By entering into unsuitable loans and neglecting to assess suitability or make reasonable inquiries, Money3 exposed both itself and consumers to significant financial risks.

The Advantages of Responsible Lending

Conversely, responsible lending practices benefit both consumers and lenders in a number of ways. By ensuring that loans are suitable for the individual, lenders are able to mitigate their financial risks and avoid costly legal action from regulatory bodies such as ASIC.

Furthermore, consumers who are able to meet their repayment obligations as a result of responsible lending practices are far more likely to return to that lender in the future. This means that lenders who prioritize responsible lending can build a loyal customer base and strengthen their reputation within the industry.

Prioritizing Consumers: The Role of ASIC

ASIC's actions against Money3 serve as a reminder that the financial services industry has a responsibility to prioritize the needs of consumers. By enforcing compliance with responsible lending obligations, ASIC plays a crucial role in ensuring that lenders prioritize affordability and suitability in their lending practices.

However, the responsibility of responsible lending extends far beyond merely meeting legal obligations. Lenders who truly prioritize the needs of their consumers will go above and beyond to ensure that loans are both affordable and suitable for the individual borrower.


While there can be significant consequences for breaching responsible lending obligations, the benefits for those who uphold them cannot be overstated. By prioritizing consumers and ensuring that loans are both affordable and suitable, lenders can mitigate their financial risks, build a loyal customer base and strengthen their reputation within the industry.