Money3 Loans Pty Ltd, known for offering personal loans and consumer vehicle finance, primarily serves consumers who may not qualify for traditional bank loans. ASIC alleges that between May 2019 and February 2021, Money3 failed to adequately assess whether certain borrowers could meet repayment obligations before entering into loan contracts for the purchase of second-hand vehicles. Notably, many of these consumers were either receiving Centrelink payments as their sole income or were on low incomes.
ASIC's Deputy Chair, Sarah Court, stated, "ASIC is committed to ensuring that lenders meet their obligations under the law, particularly when dealing with vulnerable consumers. We will take action where we identify non-compliance that puts consumers at risk."
For consumers, this legal action serves as a reminder of the importance of understanding loan terms and ensuring that lenders conduct thorough assessments of their financial situations. Borrowers are encouraged to seek financial advice and to be cautious of lenders who do not perform due diligence in assessing loan suitability.
As the case progresses, it is expected to shed light on lending practices within the car finance sector and may lead to stricter enforcement of responsible lending obligations, ultimately benefiting consumers by promoting fair and transparent lending practices.
