When Mary (not her real name) bought a second-hand car through a dealer, she thought she was investing in a better future for her family. Living in a remote community, a car wasn’t a luxury—it was essential for getting the kids to school, picking up groceries, and accessing medical appointments.
But the loan she was given through Money3 quickly turned into a nightmare. Relying solely on Centrelink payments, Mary found herself locked into repayments she simply couldn’t afford. Within months, the car broke down, leaving her stranded with a mountain of debt for a vehicle she couldn’t even drive.
Sadly, Mary’s story is far from unique. For years, financial counsellors across Australia—particularly in regional and remote First Nations communities—have seen countless families trapped in the same cycle: unaffordable car loans that deepen hardship instead of delivering independence.
A Long Time Coming
This month, the Federal Court confirmed what consumer advocates have been warning for over a decade. In a case brought forward by the Australian Securities and Investments Commission (ASIC), the Court found that Money3 breached responsible lending laws when it failed to check whether six Centrelink-reliant customers could afford the loans they were given.
For ICAN, the decision was a moment of long-awaited validation. CEO Aaron Davis said:
“For years, we’ve seen Money3 cause significant harm to First Nations people and people in financial hardship. Customers were pushed into unaffordable loans that significantly worsened their financial position, causing immense stress. In many cases, the car broke down soon after purchase and people were trapped in an unaffordable loan for a car they could no longer drive.”
The Bigger Picture
The Court may not have found systemic misconduct, but the stories are strikingly similar. Behind the statistics are people like Mary—families forced to choose between loan repayments and putting food on the table.
Consumer Action Law Centre CEO Stephanie Tonkin said:
“Money3 brazenly ignored its responsible lending obligations…ASIC’s enforcement action stood up to this business that is targeting and profiting from people in precarious financial positions.”
Mark Holden from Mob Strong Debt Help reinforced the point:
“Lenders need to make reasonable checks for affordability under the National Consumer Credit Laws to avoid consumers being set up to fail. This is especially important for First Nations consumers where often their most expensive asset is their car.”
A Turning Point for Justice
ICAN and its partners have been raising the alarm on Money3 since at least 2020, when consumer organisations first began documenting patterns of harm in the used car finance market. For regional and remote First Nations communities—where cars are essential yet access to safe and fair credit is limited—these practices have been devastating.
This Federal Court ruling is more than just a legal outcome. It’s a sign that consumer voices have been heard, and hopefully a warning to other lenders that they will be held accountable.
Where to Get Help
If you or someone you know has been impacted by an unsuitable Money3 loan, free support is available:
- ICAN (North Queensland): 1800 369 878
- National Debt Helpline: 1800 007 007
- Mob Strong Debt Help (First Nations-led service): 1800 808 488
- AFCA (to lodge a complaint): www.afca.org.au