ASIC Issues AUD $19,800 Infringement Notice to Fundo Loans Over Misleading "No Credit Check" Claims

Key Takeaways

• ASIC issued an infringement notice to Fundo Loans Pty Ltd on 11 September 2026.
• The notice alleges that website claims of "no credit check" loans were false or misleading, in breach of section 12DB(1)(e) of the ASIC Act, and carries an AUD $19,800 penalty.
• The action shows that ASIC will enforce against marketing claims that conflict with actual underwriting practices, including in the small-amount lending segment.

Deep Dive

ASIC issued an infringement notice to Fundo Loans Pty Ltd on 11 September 2026. The notice alleges that website claims of "no credit check" loans were false or misleading, in breach of section 12DB(1)(e) of the ASIC Act, and carries an AUD $19,800 penalty. The action shows that ASIC will enforce against marketing claims that conflict with actual underwriting practices, including in the small-amount lending segment.

ASIC alleges that from 3 April 2023 until about 19 September 2025, Fundo's website advertised "short term no credit check loans of up to $5000" to applicants with bad credit. During the Relevant Period (1 January 2024 to about 24 September 2025), Fundo required applicants to consent to a credit check and did conduct checks on about 4.5% of applications, at a rate that declined significantly from July 2024. ASIC considers that this made the claimed benefit, a loan with no credit check, a false or misleading representation about the particular benefits of a financial service. The notice is addressed c/o KPMG, and ASIC makes no admission-of-liability finding. Payment is expressly not an admission of guilt or liability.

The notice sets out the following timelines and options. The payment period is 28 days, beginning the day after the notice was given on 11 September 2026. Fundo may apply in writing within that period for an extension, for instalment payments, or for withdrawal of the notice. Applications must quote the unique identification code (M01749609) and state reasons. If Fundo pays on time, liability is discharged and no prosecution or pecuniary penalty proceedings can follow for that conduct. If it does not pay, or ASIC withdraws the notice, court action remains possible. The maximum civil penalty is the greatest of AUD $16.5 Million, three times the benefit obtained or detriment avoided, or 10% of annual turnover (capped at AUD $825 Million). The maximum criminal penalty is AUD $660,000.

For compliance teams, the key lesson is that the technical accuracy of a statement is not a defense if the overall impression misleads consumers about product features. Here, even partial credit checking contradicted an absolute "no credit check" claim. The conduct also persisted for roughly two and a half years, which highlights weak controls over web content. Marketing statements about eligibility, approval likelihood, fees, speed, and underwriting should be reconciled against operational practice. This applies particularly to products aimed at financially vulnerable consumers, where regulatory scrutiny is highest.

Recommended actions:
- Audit all websites, landing pages, affiliate content, and social media for absolute claims such as "no credit check," "guaranteed approval," and "instant."
- Establish a documented review and sign-off process involving compliance and credit operations for product claims.
- Implement periodic testing that compares advertised features with actual underwriting and decisioning workflows.
- Maintain content change logs and monitoring to detect stale or inconsistent claims.
- Make sure issues are escalated promptly and that remediation timelines are tracked.

The penalty is modest, but the risk implications are broader. These include reputational harm, possible escalation to court proceedings for repeat or more serious conduct, and further attention to responsible lending obligations. Because the notice is public, it may also prompt consumer complaints and heightened regulatory attention across the small-amount credit sector.

Source: Australian Securities and Investments Commission