MONEY3 LENDING CHARTER
Money3 is committed to being a responsible lender
Money3 has more than 15 years of industry experience in providing loans to consumers in Australia. We have become a market leader in providing both suitable, and affordable products to our customers.
We regularly review our systems and processes to ensure that we are lending responsibly to our customers. When we receive loan applications, we assess the ability of the applicants to meet their repayment commitments. Many loan applications aren’t approved by us and we won’t proceed if we think an applicant will have difficulty servicing the loan.
A large number of our customers are unable to receive a loan from a bank. In our view, they still deserve the right to obtain credit. They may be on lower incomes, or have negative marks on their credit files, and we will still “give our customers a go” provided we have assessed that they can afford to repay the loan they have applied for.
We believe our success can be attributed to the high level of customer service and their satisfaction, which is evidenced by the fact that so much of our business comes via “word of mouth”.
We not only comply with our regulatory obligations when providing credit to our customers, we take our commitment to be a responsible lender further by adopting the following set of principles which we have established:
- 1. To qualify for a loan with us, an applicant must have a minimum income of $1,100 per month. This means an unemployed applicant must either be meeting Mutual Obligation Requirements set by the Australian Government and receiving the Newstart Allowance, or receiving another Government benefit to be eligible for a loan.
- 2. We will not provide loans of less than $2,000 with a term of less than 12 months, otherwise known as a Small Amount Credit Contract (SACC), if the purpose of the loan is to re-finance an existing SACC that a customer has with us.
- 3. When a customer has not made a repayment on time, we will consult with the customer to understand if hardship circumstances exist and provide assistance to the customer to make a hardship application with us to alter the repayment terms. If the customer makes an application to postpone payments or enter a payment plan and provides evidence to support their hardship situation, we will generally agree to a change in the repayment terms.
- 4. Consistent with current regulations, our SACC customers who are on Australian Government benefits will not have repayments exceeding 20% of their benefits.
Beyond these regulations, we:
- a. extend the 20% cap to customers who are employed and earning less than $2,000 per month;
- b. apply a 30% cap to customers who are employed and earning more than $2,000 per month; and
- c. will not lend more than $500 to applicants who receive all their income via unemployment benefits even if they would still qualify below the 20% cap.