Solvar Pays $1.55M Penalty to Close ASIC Case and Move on From 2019-21 Issues
Solvar concludes ASIC matter with $1.55 million penalty
The Federal Court of Australia has ordered Money3 Loans Pty Ltd, a subsidiary of Solvar Ltd, to pay a pecuniary penalty of $1.55 million for contraventions of the National Consumer Credit Act during the period 2019 to 2021. This matter was first disclosed to the market on 8 September 2025, and today’s decision represents the conclusion of the regulatory proceedings. The quantified penalty provides certainty, allowing the company to move forward without this matter overhanging operations.
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What is the National Consumer Credit Act?
The National Consumer Credit Act is Australia’s primary legislation governing responsible lending practices, designed to protect consumers accessing credit products. The Australian Securities and Investments Commission (ASIC) enforces these standards, with contraventions typically relating to inadequate assessment of borrower suitability or failures in hardship provisions. Lenders must demonstrate they have properly evaluated a consumer’s capacity to repay before extending credit.
Governance improvements since 2021
CEO and Managing Director Scott Baldwin stated that Money3 has invested in strengthening governance, complaints handling, hardship processes, and underwriting practices since the period in question. The company has already addressed the issues that led to the contraventions, implementing enhanced controls across its lending operations. Management’s forward-looking approach demonstrates a commitment to compliance and operational improvement.
CEO and Managing Director Scott Baldwin
“Since the period in question Money3 has invested further in its Governance, Complaints, Hardship and underwriting practices lifting Group capabilities and setting a stronger foundation from which to grow.”
Solvar’s market position
Solvar is a leading provider of specialised finance in Australia and New Zealand with over 20 years’ experience in consumer and commercial lending. The company has funded more than $2 billion of vehicles and personal loans, dominating the used-vehicle finance market through broker, online, and direct channels. Baldwin noted that Money3 remains committed to providing finance for underserviced consumers, typically enabling them to access used vehicles and improve their ability to participate in society.
The $1.55 million penalty represents a discrete historical matter within the context of a substantial, established business. The Court’s decision brings regulatory closure, allowing investors to assess the financial impact with finality rather than uncertainty. With enhanced governance frameworks now in place, the business operates under materially improved controls compared to the 2019-2021 period when the contraventions occurred.
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