Everything you need to know about a lender's obligations to you.


All lenders have responsibilities and obligations which govern the way they operate. Here’s what you need to know about responsible lending at a glance:

  • The finance industry is heavily regulated by the government
  • Lenders must follow responsible lending practices
  • You have rights as a consumer

What does responsible lending mean for you? Keep reading to find out.

What is responsible lending?

“Responsible lending” is a general term which refers to the conduct obligations of lenders. It is defined in Chapter 3 of the National Consumer Credit Protection Act 2009.

According to ASIC, the key concept is that “credit providers must not enter into a contract with you that is unsuitable, such as a loan you can’t repay without suffering hardship or a contract that doesn’t meet your requirements and objectives.”

This means that credit providers need to shape their lending policies to ensure that they do not supply loans that will cause financial hardship for the customer.

Are cash loans responsible?

Just like the rest of the finance industry, cash loans are regulated by the Australian government. The fees, loan terms, and loan amounts are all regulated.

As long as lenders stick to their responsible lending obligations, cash loans are just as responsible as other types of credit.

What does responsible lending mean for you?

Responsible lending regulations are there to protect customers from loans which could cause financial hardship. This means that a lender should not approve a loan application if you will be unable to afford the repayments.

If you can no longer afford a loan because your financial circumstances have changed due to unemployment, illness, other changes, you can apply to the lender for a hardship variation. This will restructure your loan so that it’s more affordable for you.

Consumers also have protection if a loan was affordable for them from the start. If you think a lender was irresponsible when they lent to you, you can refer the issue to the Financial Ombudsman Service, and they will investigate the matter.

Our commitment to responsible lending

We take our responsible lending obligations seriously, and we aim for fairness in our policies. That’s why we have real people review all loan applications we receive; we always make sure that the loan is suitable for the customer.

We also don’t charge daily late payment fees if you stay in contact with us. We don’t believe in making your financial situation worse. If you’re having trouble making your repayments, all you need is get in touch with us, and we can restructure your loan so that it’s more manageable for you.

If you need a fast cash loan, you can trust Club Money. Apply online here.