ASIC's Review Focuses on Car Finance Practices in Regional and First Nations Communities

ASIC's review will assess the compliance of lenders, brokers, and other intermediaries with responsible lending obligations. It will also examine how loan defaults, hardship practices, and dispute resolution processes are managed, aiming to identify areas for improvement and reduce potential consumer harm.

The regulator has highlighted that misconduct in used car finance sold to vulnerable consumers remains a key enforcement priority. ASIC has already taken legal action against certain entities for alleged breaches of responsible lending obligations and unlicensed car loan provisions.

For consumers in regional and First Nations communities, this review is a positive step towards ensuring fair and transparent car finance practices. It underscores the importance of understanding loan terms and conditions and seeking financial products that align with one's financial capacity.

As the review progresses, consumers are encouraged to stay informed about their rights and the obligations of lenders. Utilizing resources like car loan calculators and comparison tools can aid in making informed decisions and selecting loan products that best suit individual needs.

ASIC plans to publish initial findings from the review in the second half of 2025, followed by a more detailed public report. This ongoing scrutiny aims to foster a more equitable car finance market and protect consumers from potential exploitation.