RAMS Ordered to Pay $13 Million for Home Loan Compliance Failings

‍Key Takeaways

• Federal Court Penalty: RAMS Financial Group Pty Ltd was fined $13 million (AUD 20 million) for widespread compliance failings in its home loan operations.
• Systemic Misconduct: The firm dealt with unlicensed referrers, failed to manage conflicts of interest, and did not adequately supervise representatives or enforce compliance policies.
• Consumer Risk Exposure: Justice Shariff found RAMS’ misconduct exposed customers to unsuitable loans and potential financial hardship.
• Regulatory Accountability: ASIC Deputy Chair Sarah Court emphasized the watchdog’s ongoing scrutiny of misconduct in the home lending sector.
• Business Wound Down: RAMS, a Westpac subsidiary, ceased its franchise network operations in August 2024 following a failed sale process.

Deep Dive

The Federal Court of Australia has ordered RAMS Financial Group to pay a $13 million (AUD 20 million) penalty after the company admitted to systemic compliance failures in its home lending operations between June 2019 and April 2023.

Justice Shariff found that RAMS breached multiple provisions of the National Consumer Credit Protection Act 2009 by engaging unlicensed referrers, failing to prevent conflicts of interest, neglecting adequate supervision of its representatives, and not ensuring that its credit activities were conducted “efficiently, honestly and fairly.”

According to the Court, RAMS lacked effective controls and oversight even after internal findings of potential misconduct, including instances where franchise staff submitted falsified pay slips and altered borrower information to secure loan approvals.

Justice Shariff noted that the breaches were “serious in that they pertained to obligations designed to proscribe unlicensed and other related conduct that is essential to protect consumers.” He added that the misconduct “exposed consumers to a risk of loss that the loans they entered may not have been suitable for their circumstances.”

ASIC’s Response

ASIC Deputy Chair Sarah Court said the ruling underscores the regulator’s focus on ensuring the integrity of the home lending sector.

“Financial entities must adhere to their obligations under the law and consumers must be protected from lending practices which can expose them to harm,” she said. “ASIC will continue to scrutinize those involved in the whole home lending process and will hold financial institutions accountable for misconduct.”

RAMS, a wholly owned subsidiary of Westpac Banking Corporation, operated through a network of independent franchisees targeting first-time buyers and self-employed borrowers. After Westpac halted a planned sale of RAMS in April 2024, the company began winding down operations, completing the process by August that year.

Although the brand has ceased new operations, Westpac and RAMS continue to service existing home loan customers. RAMS admitted liability in the case, brought by the Australian Securities and Investments Commission (ASIC) in June 2025, and has since remediated affected customers.

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