Consumer Credit regulatory updates from Australia.
We track 40 Consumer Credit updates from Australia regulators, published by ASIC. The archive covers 35 enforcement actions, 4 reports and 1 news. Most recent update: November 2026.
Sunshine Loans ordered to pay $5.5 million penalty for charging customers illegal fees
AI Analysis
The Federal Court ordered Sunshine Loans Pty Ltd to pay a $5.5 million civil penalty and ASIC's costs after finding that it imposed, charged and accepted an unlawful $35 amendment fee on small amount credit contracts. The conduct affected more than 670,000 contracts between July 2016 and November 2020, and the penalty demonstrates that courts may impose substantial deterrent penalties where fee practices exploit financially vulnerable borrowers, even when the amount collected is comparatively modest.
Key dates
2016-07-01
Beginning of the period during which Sunshine Loans entered into contracts containing the unlawful amendment fee.
2019-03-13
Relevant fee contraventions became civil penalty provisions; civil penalties were available only for contraventions from this date.
2020-11-01
Sunshine Loans ceased charging the amendment or rescheduling fee shortly after ASIC intervention.
2022-06-01
ASIC commenced Federal Court civil penalty proceedings against Sunshine Loans.
2024-04-12
The Federal Court found that Sunshine Loans had contravened the National Credit Code by imposing, charging and accepting the prohibited fee.
2025-03-24
The Full Federal Court dismissed Sunshine Loans' liability appeal and determined the relevant appeals in ASIC's favour.
2026-03-18
The High Court unanimously dismissed Sunshine Loans' appeal concerning the recusal issue, allowing the penalty matter to return to the Federal Court.
2026-11-06
The Federal Court ordered Sunshine Loans to pay a $5.5 million civil penalty and ASIC's costs.
Suggested considerations
Compliance teams may wish to inventory every fee and charge applied to small amount credit contracts and map each one to an expressly permitted category under the National Credit Code.
Lenders should consider testing repayment-date changes, hardship arrangements, restructures and other contract variations to confirm that fees are not imposed when a consumer is not in default.
Firms should consider conducting a historical review of fee configuration, customer communications, contract templates, payment records and general ledger data to identify comparable conduct and quantify affected consumers.
Where potentially unlawful fees are identified, firms should consider stopping the relevant charging logic, preserving records, assessing remediation and notifying relevant governance bodies and regulators where appropriate.
Credit licensees may wish to strengthen legal review and compliance sign-off for product terms and fee changes, including documented evidence supporting the legality of each fee.
Boards and senior management should consider whether compliance monitoring adequately tests fee restrictions for products used by financially vulnerable consumers and whether identified issues are escalated promptly.
Firms should consider reviewing whether their dispute-resolution and remediation processes enable affected consumers to obtain redress through internal complaints handling and the Australian Financial Complaints Authority.
What changed
This is an enforcement outcome rather than a new legislative rule. The Court confirmed that small amount credit contract providers may impose only the fee categories permitted by the National Credit Code: an establishment fee, a monthly fee, a fee payable on default, or a government fee, charge or duty. A $35 fee for rescheduling a repayment where the consumer was not in default did not fall within those categories.
Compliance impact
The outcome is high-severity for consumer lenders because the Court treated the conduct as serious and deliberate and considered exploitation or intensification of hardship to warrant substantial general deterrence. The penalty also signals that a lender's compliance culture, unsupported legal positions and conduct during prolonged litigation may influence the financial consequences, beyond the amount of unlawful fees collected.
ASIC cancels Australian credit licence of Walker Stores Pty Ltd (in Liquidation) (Receivers and Managers Appointed)
Why this matters
The document reports ASIC cancelling the Australian credit licence of Walker Stores after the CSLR paid two AFCA determinations it failed to pay. It identifies consumer credit as the relevant sector and licensing and consumer compensation as the core topics.
ASIC cancels Australian credit licence of MWL Financial Services Pty Ltd (In Liquidation)
AI Analysis
ASIC cancelled MWL Financial Services Pty Ltd’s Australian credit licence on 2026-10-12 after MWL failed to pay an AFCA determination and the CSLR paid $90,031.34, including interest. The decision confirms that this cancellation is mandatory once the statutory trigger is met and that liquidation or prior licence cancellation does not end the firm’s AFCA-related complaint exposure.
Key dates
2025-11-21
Daniel Juratowitch and Rachel Burdett of Cor Cordis were appointed liquidators of MWL.
2025-11-28
AFCA made a determination against MWL, which MWL failed to pay.
2026-09-16
The CSLR paid $90,031.34, including interest, in respect of the unpaid AFCA determination and notified ASIC.
2026-10-12
ASIC cancelled MWL’s Australian credit licence and commenced the specified 12-month continuation of AFCA membership.
2027-10-12 Deadline
MWL’s required continuation of AFCA membership ends, subject to any further applicable requirements.
Suggested considerations
Credit licensees should consider maintaining controls that identify AFCA determinations, track payment deadlines and escalate any threatened or actual inability to pay to senior management and the board.
Compliance teams may wish to assess whether unresolved AFCA determinations could trigger CSLR involvement and the consequent mandatory licence-cancellation risk under the National Consumer Credit Protection framework.
Firms approaching licence cancellation, surrender or liquidation should consider confirming continuing AFCA membership obligations and preserving complaint-handling, client-file and remediation records for the applicable post-exit period.
AFCA members should consider reviewing procedures for responding to complaints involving related entities, former representatives and businesses that have ceased trading or entered liquidation.
Credit providers and intermediaries should consider monitoring ASIC enforcement involving MWL, Shield Master Fund and related entities for indicators relevant to advice referrals, distribution oversight, representative supervision and complaint remediation.
Businesses that have paid CSLR levies or may be exposed to future CSLR funding should consider incorporating unpaid AFCA determinations and insolvency trends into conduct-risk and financial-planning assessments.
What changed
MWL’s Australian credit licence was cancelled following the unpaid AFCA determination dated 2025-11-28 and the subsequent CSLR compensation payment dated 2026-09-16. ASIC stated that it has no discretion to avoid cancellation and that the decision is not subject to merits review. MWL must nevertheless retain AFCA membership until 2027-10-12, allowing further complaints to be lodged for 12 months after the cancellation.
Compliance impact
The direct impact is entity-specific, but the enforcement consequence is severe: an unpaid AFCA determination followed by a CSLR payment results in mandatory cancellation of the credit licence, with no merits review. The case also demonstrates that licence cancellation and liquidation do not immediately terminate AFCA access, complaint handling or potential consumer claims.
ASIC review finds room for improvement in mortgage brokers’ best interests duty practices
Why this matters
REP 840 is a thematic review of best interests duty and complaints handling practices across 13 credit licensees in eight aggregator groups, covering roughly two-thirds of mortgage broker representatives.
Fundo Loans pays $19,800 infringement notice over ‘no credit check loans’ claim
Why this matters
This is a news report of a completed enforcement action (infringement notice paid). Fundo Loans, a licensed credit provider offering small loans online, was penalized for misleading claims about 'no credit check loans' when credit checks were actually required.
ASIC sues lead generation business over alleged misleading comparison claims
Why this matters
ASIC's Federal Court proceedings against Clark Family for allegedly misrepresenting comparison and tailoring services while actually operating a lead auction model constitutes a significant enforcement action with broad implications for fintech lead generators and comparison platforms.
Court orders CashnGo to pay $3.5 million penalty for unfair contract terms
Why this matters
This is a significant enforcement judgment by ASIC against CashnGo for unfair contract terms in standard form small amount credit contracts. The case establishes binding precedent on what constitutes unfair terms (automatic account monitoring and unscheduled withdrawals without consumer control), affects over 85,000...
ASIC protects consumers by removing high-risk financial sector participants
Why this matters
ASIC media release reporting administrative enforcement outcomes across financial services, credit, and corporate sectors. Covers 150 enforcement actions including licence cancellations, banning orders, and director disqualifications.
Former bankrupt coconut water CEO Tim Xenos resentenced on ASIC charges
Why this matters
This is a news report of a completed legal proceeding involving director disqualification and bankruptcy disclosure violations under the Corporations Act and Bankruptcy Act. It is informational content documenting enforcement action outcomes rather than a regulatory requirement or policy change.
ASIC disqualifies Victorian director Antonio Torcasio for 5 years
Why this matters
ASIC director disqualification case involving breach of statutory obligations, poor governance, and creditor harm across multiple small businesses. Relevant as regulatory enforcement precedent for director conduct standards and company management requirements under Corporations Act s.206F.
ASIC cancels Australian credit licence of Zenoz Enterprises Pty Ltd
Why this matters
ASIC enforcement action cancelling a credit licence due to cessation of activities and non-payment of regulatory levies. This is informational regulatory news regarding licence cancellation and compliance failure, not an urgent market alert.
Harvey Norman and Latitude ordered to pay combined $55 million penalties for misleading customers
Why this matters
ASIC enforcement action against Harvey Norman and Latitude Finance for misleading advertising of interest-free payment schemes. Core issues involve consumer protection violations, inadequate disclosure of credit card requirements and associated fees, and conduct breaches under ASIC Act.
ASIC bans Queensland property developer Jack Gould from financial services for 4 years
Why this matters
ASIC enforcement action against property developer operating as financial services provider. Primary concerns are consumer protection (misuse of investor funds), conduct violations, and licensing/authorization issues. Classified as informational news rather than urgent regulatory change.
ASIC lifts bonnet on car finance costs and distribution concerns
Why this matters
ASIC regulatory review of car finance sector identifying consumer protection concerns including excessive fees, inadequate hardship support, and third-party distributor oversight failures. Informational media release announcing Report 832 findings and enforcement actions against non-compliant lenders.
ASIC helps strengthen the fight against imposter scams in financial services
Why this matters
ASIC initiative to combat imposter scams by publishing AFS licensee websites on Professional Registers Search. Affects all financial services licensees (banks, investment platforms, super funds).
Court finds south-west Sydney car dealership and former director engaged in unlicensed lending and charged unlawful fees
Why this matters
Federal Court enforcement action against unlicensed car dealership providing credit without required Australian Credit Licence. Case establishes precedent for ASIC enforcement against unlicensed lending by non-traditional credit providers.
Federal Court orders Westpac to pay $26 million penalty for hardship failures
Why this matters
ASIC enforcement action against Westpac for systemic failures in responding to customer hardship requests under the National Credit Code. This is a significant regulatory enforcement case involving consumer protection obligations and operational failures, but presented as news/enforcement outcome rather than requiring...
Cigno Australia and director Mark Swanepoel, BSF Solutions and director Brenton Harrison, to pay $7 million in penalties for Credit Act breaches
Why this matters
This regulatory update is focused on enforcement actions against Cigno Australia and BSF Solutions for engaging in unlicensed credit activities and charging prohibited fees, which are consumer protection and licensing issues impacting the consumer credit and broader financial services sectors.
Mecca companies pay $594,000 in infringement notices for failing to lodge financial reports on time
Why this matters
This regulatory update from ASIC focuses on large proprietary companies associated with the Mecca retail group failing to lodge their audited financial reports on time.
High Court finds in favour of ASIC on an appeal by Sunshine Loans
Why this matters
This regulatory update from ASIC relates to a court case involving a consumer credit provider, Sunshine Loans, and ASIC's enforcement action against the firm for charging unlawful fees. The update is relevant to consumer credit firms and discusses consumer protection and licensing/authorization issues.
ASIC urges Gen Z to ‘sense-check’ money advice as social media fuels riskier financial decisions
Why this matters
This regulatory update from ASIC focuses on the risks associated with young Australians (Gen Z) using social media and AI platforms for financial information and decision-making, particularly in relation to cryptocurrency investments.
Remedy Housing officers sentenced for dishonesty offences
Why this matters
This regulatory update from ASIC involves a case of dishonest conduct by officers of a mortgage lending firm, Remedy Housing, who misappropriated customer deposits and made false representations about interest-free mortgages.
ASIC bans former credit and financial services representative Neil Andrew Cato for 5 years
Why this matters
This regulatory update from ASIC involves the banning of a former credit and financial services representative for 5 years due to failure to comply with AFCA determinations and insolvency. This impacts banking, credit, and financial services firms, particularly those involved in consumer credit activities.
ASIC cancels Australian credit licence of John Adicho
Why this matters
This regulatory update from ASIC involves the cancellation of an Australian credit license, which impacts consumer credit firms and is related to licensing and conduct obligations.
ASIC disqualifies Victorian property development director Kylie Campbell for 5 years
Why this matters
This regulatory update from ASIC disqualifies a director of several property development and investment companies due to failures in meeting director duties and obligations.
Director of WA tiling business charged with making false statement
Why this matters
This regulatory update from ASIC involves a director of a tiling business who is charged with making a false statement in a document lodged with ASIC. This relates to consumer protection, reporting and disclosure requirements, as well as authorization and licensing for businesses.
Collection agency company director loses appeal against conviction for obtaining a financial advantage by deception
Why this matters
This regulatory update is about a collection agency director being convicted for obtaining a financial advantage by deception, which relates to consumer credit activities and licensing requirements. The update is of medium urgency as it involves a regulatory enforcement action.
RAMS penalised $20 million for widespread compliance failings regarding home loans
Why this matters
This regulatory update from ASIC indicates widespread compliance failures by RAMS, a subsidiary of Westpac, in relation to home loan arrangements. The failures include dealing with unlicensed referrers, inadequate conflict of interest management, and lack of supervision to ensure compliance with credit laws.
ASIC cancels Australian credit licence of GS-APAC Pty Ltd
Why this matters
This regulatory update from ASIC relates to the cancellation of an Australian credit license for GS-APAC Pty Ltd, a credit provider, due to failure to pay an AFCA determination. This impacts the banking and consumer credit sectors, and involves authorization and licensing as well as consumer protection issues.
ASIC successfully defends special leave application to the High Court by Cigno Australia director Mark Swanepoel and BSF Solutions director Brenton Harrison
Why this matters
This regulatory update is relevant to consumer credit providers, particularly fintechs, as it involves a case against Cigno Australia and BSF Solutions for operating without a credit license and charging prohibited fees.
ASIC drives car finance providers to improve consumer outcomes
Why this matters
This regulatory update from ASIC focuses on issues in the motor vehicle finance sector, including problematic sales tactics, high loan costs, and high default rates.
ASIC disqualifies NSW hospitality director for five years
Why this matters
This regulatory update from ASIC disqualifies a director from managing corporations for 5 years due to failures in meeting statutory obligations, improper use of position, and allowing companies to trade while insolvent.
Former director of private lending companies permanently banned over fraud conviction
Why this matters
This regulatory update is relevant to banking, consumer credit, and mortgage lending firms, as it involves the permanent banning of a former director of private lending companies due to a fraud conviction.
ASIC issues DDO stop order against City Finance Lending Pty Ltd
Why this matters
This regulatory update from ASIC involves a stop order against a consumer credit provider, City Finance Lending, due to deficiencies in its target market determination for a small amount credit contract product. This impacts consumer credit firms and banks, and relates to consumer protection and licensing requirements.
ASIC issues DDO stop order against FXCM for TMD deficiencies
Why this matters
This regulatory update from ASIC is focused on issues with the target market determination (TMD) for CFDs offered by FXCM, a broker dealer. ASIC has issued a stop order preventing FXCM from issuing CFDs to retail clients due to deficiencies in the TMD.
Business lender and loan introducer together penalised $515,000 over credit law breaches
Why this matters
This regulatory update is relevant for consumer credit lenders and introducers, as it highlights enforcement action taken against a business lender and loan introducer for breaching consumer credit laws.
ASIC bans Sydney mortgage broker for ten years and cancels her Australian credit licence
Why this matters
This regulatory update from ASIC involves the banning and license cancellation of a Sydney-based mortgage broker, which is relevant for mortgage brokers and other firms involved in consumer credit and lending activities.
ASIC suspends Australian credit licence of Transitional Funding Pty Ltd
Why this matters
This regulatory update from ASIC suspends the Australian credit license of Transitional Funding Pty Ltd for failing to comply with license conditions and pay industry funding levies. This impacts consumer credit firms and involves regulatory authorization and consumer protection issues.
ASIC secures nearly $40 million in refunds to investors and drives change after CFD sector falls short
Why this matters
This regulatory update from ASIC focuses on the contracts for difference (CFD) sector, which involves high-risk leveraged trading products. ASIC has taken enforcement action, secured refunds for investors, and driven compliance improvements across the industry.