ASIC Initiates Comprehensive Review of Car Finance Practices in Regional and First Nations Communities

The review will scrutinize the compliance of lenders, brokers, and other intermediaries with responsible lending obligations. It will also assess how loan defaults, hardship practices, and dispute resolution processes are managed within the sector. Seven lenders are initially included in the review, with additional brokers and intermediaries expected to be assessed as the project develops.

ASIC has signaled that enforcement action may follow if misconduct is identified. The regulator's focus on regional and First Nations consumers highlights the need to address potential disparities and ensure equitable access to fair financial services across all communities.

For consumers, this review serves as a reminder of the importance of understanding loan terms and conditions, especially when financing vehicle purchases. Prospective borrowers are encouraged to seek transparent information from lenders and to be aware of their rights under consumer protection laws.

As the review progresses, ASIC plans to publish initial insights in the second half of 2025, followed by a more detailed public report. These findings are expected to inform policy decisions and drive improvements in the car finance sector, ultimately leading to better outcomes for all Australian consumers.