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The Australian Securities and Investments Commission (ASIC) alleged that Fundo Loans, an online lender specialising in short-term personal loans of between $500 and $10,000, had made a misleading claim that it offered “no credit check loans” of up to $5,000.
ASIC said the claim was misleading because, from at least 1 January 2024, Fundo required all loan applicants to consent to a credit check and conducted credit checks on some loan applications.
The claim appeared on Fundo’s website from 3 April 2023 until about 19 September 2025.
Fundo paid the infringement notice on 17 September 2026, with ASIC noting that payment of an infringement notice does not amount to an admission of liability.
Further action
The action against Fundo Loans forms part of ASIC’s broader focus on misconduct.
The regulator has also commenced Federal Court proceedings against Clark Family, alleging the lead-generation business promoted loan and insurance comparison services through up to 70 websites while selling consumer inquiries to the highest-bidding broker.
ASIC alleges Clark Family ran the websites between September 2020 and September 2026, offering free online assessments to consumers seeking loan and insurance products.
The regulator said the websites represented that consumers could compare rates, quotes, and product options from multiple lenders and insurers while also receiving recommendations tailored to their individual needs and circumstances.
However, ASIC alleges the business did not compare financial products or provide tailored recommendations.
Instead, consumer inquiries were allegedly channelled through an internal bidding process, with the broker prepared to pay the most receiving the lead and then contacting the consumer directly.
In December 2024, ASIC also commenced civil penalty proceedings against HSBC, alleging the bank failed to adequately protect customers from scams and breached its financial services licence obligations.
This year, that action led to a $35 million penalty and the introduction of steps to strengthen its fraud controls and compensate affected customers.
[Related: APRA acts over Bendigo’s ‘longstanding’ risk weaknesses]
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