Money3 Wins Most ASIC Claims; Five Loans Found with Verification Issues
The Federal Court has dismissed most ASIC claims against Money3 Loans, a Solvar subsidiary, affirming its compliance with responsible lending standards while identifying limited breaches in a handful of consumer loans.
- Federal Court rejects majority of ASIC allegations against Money3
- Court confirms Money3 staff training and credit assessments meet regulatory standards
- Limited breaches found in five loans related to verification of living expenses
- Solvar commits to addressing findings and enhancing staff training
- Penalties and legal costs to be determined in coming months
Federal Court Verdict – A Mostly Positive Outcome for Money3
On 5 September 2025, the Federal Court delivered a significant judgment in the Australian Securities and Investments Commission's (ASIC) proceeding against Money3 Loans Pty Ltd, a key subsidiary of Solvar Limited. The Court dismissed most of ASIC's claims, affirming that Money3's staff are adequately trained and competent to conduct credit activities under its Australian Credit Licence. This outcome provides a reassuring signal to investors and stakeholders about the robustness of Money3's compliance frameworks.
Compliance Strengths Highlighted Amid Limited Breaches
The Court found that Money3's internal benchmarks for assessing the suitability of potential borrowers complied with responsible lending obligations. However, it identified limited breaches concerning five consumer loans issued between 2019 and 2021. Specifically, credit analysts failed to make reasonable inquiries or verify living expenses adequately based on bank statement data. Additionally, one loan involved insufficient enquiry regarding financing of application and broker fees. These findings, while limited in scope, underscore the challenges of maintaining rigorous compliance across all loan assessments.
Solvar’s Response and Forward Strategy
Solvar's Chair, Stuart Robertson, emphasized the company’s commitment to best practice, noting that the Court’s findings validate the competence of Money3’s staff and the appropriateness of its credit assessment processes. Managing Director and CEO Scott Baldwin highlighted ongoing efforts to engage with community and consumer groups, aiming to enhance support for customers facing financial hardship. The company is also investing in staff training and development, particularly for teams handling hardship cases, to ensure a customer-centric approach.
Pending Penalties and Market Implications
The Federal Court will deliberate on any penalties and legal costs in the coming months, leaving some uncertainty about the financial impact on Solvar. While the judgment largely favours Money3, the limited breaches serve as a reminder of the regulatory scrutiny facing consumer finance providers. Market participants will be watching closely to see how Solvar navigates these challenges and whether it can leverage this outcome to reinforce its reputation in the competitive used-vehicle finance sector.
Bottom Line?
Solvar’s largely favourable court outcome sets the stage for focused compliance enhancements amid pending penalty decisions.
Questions in the middle?
- What penalties will the Federal Court impose on Money3, if any?
- How will Solvar specifically address the identified breaches in loan verification?
- Could this ruling influence ASIC’s approach to regulating consumer finance providers?
