Overview
ASIC has filed civil penalty proceedings in the Federal Court against Ausfinancial Pty Ltd, trading as Swoosh Finance. The proceedings allege the company failed its responsible lending obligations and breached design and distribution obligations (DDO).
What ASIC alleges
Responsible lending failures
ASIC alleges Swoosh gave car-secured loans of $2,000 to $5,000 to 11 consumers between October 2019 and October 2024 without properly checking whether those borrowers could afford repayments. ASIC states many of those borrowers were already in financial difficulty, with multiple existing loans, buy-now/pay-later debts, and signs of distress including dishonoured direct debits and negative bank balances.
Swoosh charged upfront fees of more than $400 and an annual interest rate of 47%, with additional fees applying to any defaults.
Design and distribution obligation breaches
ASIC also alleges Swoosh failed to review and update its target market determination even as complaints from customers and the Australian Financial Complaints Authority increased.
Court proceedings and key dates
- A case management hearing is scheduled for 10 September 2026.
- A liability hearing is listed to commence on 30 March 2027.
Context for credit licensees
Responsible lending obligations require credit licensees to make reasonable inquiries about and verify each borrower's financial situation, requirements, and objectives before offering a credit contract. A target market determination is required to be actively reviewed and updated - publishing one at the outset is not sufficient to meet DDO obligations.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.