TL;DR Summary

Sunshine Loans lost an appeal against ASIC in the Federal Court for charging customers an unlawful $35 “Amendment Fee.” The Court said Sunshine Loans shouldn’t have charged this fee because it wasn’t specifically tied to customers missing repayments. Thousands of customers may now be able to request a refund directly from Sunshine Loans, and affected customers could also seek credit repair if their credit rating was harmed by this issue.

Sunshine Loans vs ASIC: Everything You Need to Know (and How it Affects You)

On 24 March 2025, a major ruling was handed down by the Federal Court of Australia. The case was Sunshine Loans Pty Ltd v Australian Securities and Investments Commission [2025] FCAFC 34. This case has big implications for anyone who’s ever had a small loan with Sunshine Loans—or similar lenders—and been charged fees for changing repayment dates.

Let’s break it down clearly, so you understand what happened, why it matters, and what steps you can take next.

The Background – What Started All This?

Sunshine Loans is a company providing small loans—known as small amount credit contracts. Like many similar lenders, they often charged customers a $35 fee whenever a repayment schedule was amended or changed.

ASIC, Australia’s main consumer protection regulator, argued this fee was unlawful under Australian credit laws because lenders are strictly limited in what fees they can charge.

The issue in this case was specifically whether Sunshine Loans was allowed to charge these $35 “Amendment Fees” just because a customer wanted to change their repayment date, or whether fees like these were only permitted if a customer defaulted (missed a payment or breached the contract).

What Did the Court Decide?

The Federal Court (and later the Full Federal Court on appeal) ruled in favour of ASIC and against Sunshine Loans.

Here’s why:

1. When is a Fee Allowed?

According to Australian law (National Consumer Credit Protection Act 2009 and National Credit Code), lenders can only charge certain fees clearly allowed by law. One allowed category is a fee charged if a borrower defaults—meaning they miss a payment or break their agreement.

2. What Was Wrong with the Sunshine Loans Fee?

Sunshine Loans claimed their $35 “Amendment Fee” was charged because customers were effectively in default—they argued that customers changed repayment dates because they couldn’t pay on time.

However, the Court rejected this argument clearly and strongly. It said the law is clear: fees can only be charged specifically because of a default (like missed payments), not simply because customers want to reschedule payments.

The Court clarified:
Just being late, or changing repayment dates does NOT automatically mean the borrower defaulted.

3. Why is This Important?

This decision clearly defines the limits on lenders charging fees. It means lenders can’t disguise fees simply as “amendment” or “rescheduling” fees if they’re not clearly tied to actual defaults.

Key Details from the Judgment

  • Sunshine Loans breached the law every time they entered into contracts that included the unlawful $35 Amendment Fee.

  • They unlawfully charged this fee over 12,000 times and actually collected payment from customers over 8,000 times.

  • Each of these fees represented a breach of the law.

These breaches mean affected customers can potentially ask Sunshine Loans directly for refunds of these fees.

What Does This Mean for Customers?

If you had a loan with Sunshine Loans and were charged this Amendment Fee, you might be owed a refund.

  • You have the right to contact Sunshine Loans directly and ask them for a refund.

  • Even if you agreed to pay the fee at the time, the Court said clearly that if a fee is unlawful, your agreement does not make it legal. You can still seek a refund.

  • If this situation negatively affected your credit rating (for example, if the fee caused you financial difficulties or led to other problems on your credit file), you have options to fix your credit report.

Your Next Steps

If you think you were affected:

1. Contact Sunshine Loans

  • Ask directly for a refund of the Amendment Fees charged to your account.

  • Quote the judgment: “SunshineLoans Pty Ltd v ASIC [2025] FCAFC 34”.

2. Check your Credit File

  • If you’ve faced negative consequences like defaults or late payments on your credit file due to this issue, it’s important to review your credit file thoroughly.

3. Seek Expert Credit Repair Help

  • At MyCRA Lawyers, we specialise in helping Australians remove unfair negative marks from their credit reports.

  • If you’ve faced credit issues due to unfair fees like these, contact MyCRA Lawyers. Our expert team can assess your case, explain your options clearly, and help protect your financial future.

Final Thoughts – Why This Matters for All Australians

This judgment reinforces strong consumer protection rules in Australian credit law. It sends a clear message to all lenders:

  • You must follow the rules clearly.

  • You cannot charge fees unless they’re directly tied to a default.

  • Customers deserve transparency and fairness in all lending agreements.

By understanding decisions like these, you stay informed and empowered. Remember, if you’ve been affected, don’t hesitate to reach out for professional assistance.

Need Help With Your Credit File?
Contact MyCRA Lawyers now at 07 3124 7133. We’re here to educate, assist, and protect your credit health.

Book your appointment now at https://mycralawyers.com.au/book-in

Ref: SunshineLoans Pty Ltd v ASIC [2025] FCAFC 34