Sunshine Loans Ordered to Pay $5.5 Million for Charging an Illegal $35 Rescheduling Fee

The Federal Court has ordered small amount lender Sunshine Loans Pty Ltd to pay $5.5 million in civil penalties for charging consumers a fee that is prohibited under the National Credit Code, ending a case ASIC began more than four years ago.

The fee

According to ASIC, between July 2016 and November 2020 Sunshine Loans entered into more than 670,000 small amount credit contracts containing a $35 amendment fee. Consumers were charged the fee for agreeing with the lender to reschedule a repayment date, even though they were not in default.

The court found Sunshine Loans charged the fee more than 12,000 times and received payment more than 8,000 times, collecting almost $300,000. Under consumer credit law, small amount credit contract providers can only charge an establishment fee, a monthly fee, a default fee or a government fee, charge or duty. The amendment fee was not one of those.

Civil penalties were only available for contraventions from 13 March 2019, when the relevant provisions became civil penalty provisions. Sunshine Loans received about $113,000 from the fee in that penalty period. It stopped charging the fee in November 2020, shortly after ASIC intervened, without admitting liability.

The court’s findings

ASIC said Justice Derrington found the contraventions were serious and deliberate, and noted that conduct that exploits financially vulnerable consumers or intensifies their hardship warrants substantial general deterrence. On the lender’s approach to the litigation, his Honour said that “many of the arguments advanced … were devoid of merit to the point of being potentially disingenuous”, which in part indicated a poor culture of compliance. The court also ordered Sunshine Loans to pay ASIC’s costs.

A long road

ASIC began the proceedings in June 2022 after a targeted review of the small amount credit market during the COVID-19 pandemic. Justice Derrington found against the lender on liability in April 2024. Appeals on liability and on his Honour’s recusal from the penalty hearing went to the Full Federal Court, which ruled in ASIC’s favour in March 2025, and the High Court unanimously dismissed Sunshine Loans’ further appeal in March 2026.

“People who rely on small loans are often already under financial pressure, using them to meet essential or unexpected expenses. Unlawful fees only add to that pressure,” ASIC Commissioner Alan Kirkland said. “Sunshine Loans fought this case at every turn, including through highly technical legal arguments and appeals.”

Why it matters

The case is a reminder that the fees a lender may charge on small amount credit contracts are strictly limited, and that a fee described as an administrative convenience can still breach the law. ASIC said consumers concerned they may have been affected can complain to the Australian Financial Complaints Authority.

Sources: ASIC media release 26-269MR, “Sunshine Loans ordered to pay $5.5 million penalty for charging customers illegal fees” (November 2026); ABC News markets live coverage (6 November 2026).

This article is general information only and is not legal advice. Readers should seek advice specific to their circumstances.