The Federal Court has imposed a $1.55 million penalty on Money3 Loans, a Solvar subsidiary, for limited breaches of the National Consumer Credit Act between 2019 and 2021. Solvar highlights strengthened governance and underwriting since the period in question.
- Federal Court fines Money3 Loans $1.55 million for credit law breaches
- Contraventions relate to 2019-2021 lending practices
- Solvar emphasises governance and underwriting improvements
- Commitment to finance underserved consumers reaffirmed
- Penalty follows earlier ASIC litigation largely resolved
Federal Court Imposes $1.55m Penalty on Money3 Loans
The Federal Court of Australia has handed down a $1.55 million pecuniary penalty against Money3 Loans Pty Ltd, a subsidiary of Solvar Limited (ASX:SVR), for limited contraventions of the National Consumer Credit Act during the 2019 to 2021 period. This follows the initial market announcement in September 2025 and closes a significant chapter of regulatory scrutiny for the group.
Solvar Acknowledges Decision and Highlights Reforms
Solvar’s CEO Scott Baldwin acknowledged the Court’s decision, emphasising the company’s respect for the ruling. He pointed to substantial investments since the period in question to bolster governance, complaints handling, hardship support, and underwriting standards across the group. These changes aim to build a stronger foundation for sustainable growth and compliance.
The company’s focus remains on providing finance solutions to underserved consumers, particularly enabling access to used vehicles; a critical factor in social and economic participation. This aligns with Solvar’s long-standing market position as a specialist in consumer and commercial finance across Australia and New Zealand.
Regulatory Challenges Amid Expansion and Profit Growth
This penalty comes in the wake of Solvar’s recent financial performance, which saw a 5.8% rise in half-year net profit to $20 million, driven by strategic asset sales and expanded funding, including exiting its New Zealand loan book. The company also declared special dividends reflecting confidence despite ongoing regulatory matters. These developments were detailed in the group’s half-year results, where the resolution of ASIC litigation was noted, with most claims dismissed but some penalties, like this one, remaining.
Solvar’s ability to navigate regulatory pressures while expanding its loan book and maintaining dividend payouts illustrates a balancing act common in the consumer finance sector. The company’s governance overhaul may be viewed as a necessary step to mitigate future compliance risks and shore up investor confidence.
Bottom Line?
Solvar’s $1.55 million penalty highlights past compliance gaps but underscores ongoing efforts to strengthen governance and sustain growth in a tightly regulated market.
Questions in the middle?
- How will Solvar’s governance reforms affect its risk profile and regulatory oversight going forward?
- Could further regulatory actions emerge from the ASIC litigation period or related investigations?
- What impact might this penalty have on Solvar’s reputation among brokers and consumers in the competitive used-vehicle finance market?