Sunshine Loans lodged the appeal after Justice Derrington in 2024 ruled that Sunshine Loans had contravened the National Credit Code by entering into small amount credit contracts containing an unlawful fee and charging those fees to customers.
The Nerang-registered Sunshine Loans appealed that decision.
The Full Court this week unanimously dismissed the appeal.
In June 2022 the corporate watchdog ASIC started the case against Sunshine Loans, which at the time, Sunshine Loans was one of Australia’s largest credit providers in the “Small Amount Credit Contract” market.
The trial before Justice Derrington took place between 17 and 20 July 2023.
The court heard that Sunshine Loans had entered into over 670,000 contracts which included an amendment or rescheduling fee that was not permitted by the National Credit Code.
The Court found Sunshine Loans required the payment of these fees by consumers more than 12,000 times and accepted payments on more than 8000 occasions. Sunshine Loans received nearly $300,000 from customers, even though the fees were prohibited under the National Credit Code.
ASIC Deputy Chair Sarah Court said they were pleased with the result of the appeal.
‘We are pleased the Full Court has confirmed the decision that Sunshine Loans imposed unlawful fees on its customers,’’ she said.
“Protecting consumers – especially financially vulnerable consumers – from harm is an enduring priority for ASIC.’
The matter will now come back before Justice Derrington for a hearing on the question of the appropriate penalty to be paid by Sunshine Loans.
Under national consumer credit laws, a provider of a small amount credit contract must not impose fees and charges apart from: an establishment fee, a monthly fee, a fee payable in the event of a default, or a government fee, charge or duty.
Anybody who has taken out a loan with Sunshine Loans and are concerned that they may have been affected by this conduct, can make a complaint to the Australian Financial Complaints Authority on 1800 931 678.