ob体育 is launching a review into the motor vehicle finance sector this month with the aim to drive better consumer outcomes, particularly for those living in regional and remote locations, including First Nations communities.
ob体育 will look at compliance of lenders, brokers and other intermediaries, and will also review how loan defaults, hardship practices and dispute resolution processes are managed.
The review will cover the practices of seven lenders and pinpoint opportunities for improvement across the sector. ob体育 will also identify brokers and intermediaries to be included in its review as the project progresses.
We will take enforcement action to protect consumers where appropriate.
Our focus will be on the motor vehicle finance sector broadly, noting misconduct in used car finance sold to vulnerable consumers remains a key enforcement priority for ob体育 in 2025.
ob体育 currently has proceedings against car finance company Money3 Loans Pty Ltd for alleged breaches of responsible lending obligations (23-126MR). ob体育 also has proceedings against car dealership Diamond Wheels, Keo Automative, and a former director, for allegedly providing unlicensed car loans to consumers, many of whom paid an excessive interest rate (24-209MR). We continue to investigate other matters in the sector.
This project seeks to strengthen processes, practices and compliance across the car finance industry and address the potential for consumer harm. ob体育 aims to improve the experiences of consumers, who are borrowing money to buy a car, particularly people residing in regional and remote locations, including First Nations peoples.
Initial high-level insights from ob体育鈥檚 review will be published in the second half of 2025, followed by a more detailed public report.
Background
Improving consumer outcomes is a key strategic priority for ob体育. Misconduct impacting First Nations people is also an enduring enforcement priority. More information can be found on ob体育鈥檚 Indigenous Financial Services Framework page and in ob体育鈥檚 Reconciliation Action Plan.
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ob体育 is Australia鈥檚 corporate, markets and financial services regulator.