The Full Court of the Federal Court has upheld an earlier ruling that Sunshine Loans, a provider of small amount credit contracts, charged prohibited fees over a four-year period.
In April 2024, the Federal Court found in favour in a case bought by ASIC that Sunshine Loans charged so-called amendment fees prior to the occurrence of a default.
The fees in question were charged for varying the terms of the loan contract, amending them by deferring a payment data or for reorganising the dates on which payments were due.
The court ruled that Sunshine Loans contravened the Credit Code on 670,609 occasions.
Sunshine had appealed against the making of the adverse declarations, and also contended the primary judge should recuse himself from conducting the further hearing on liability.
“The primary judge was correct … the contraventions alleged by ASIC were established” the Full Court ruled.
High-impact negotiation
masterclass
July 9 & 16, 2025
5:00pm - 8:30pm
This high-impact negotiation masterclass teaches practical strategies to help you succeed in challenging negotiations.
Having had its defence in the original trial labelled as “fanciful”, the Full Court has now dismissed one line of argument by Sunshine disputing jurisdiction in much the same terms.
Sunshine argued that the provisions in the Credit Act which empower ASIC to apply for declarations of contravention of civil penalty provisions and for the imposition of pecuniary penalties do not apply to contraventions of the Code.
“The contention is quite bizarre” the appeal court said.
Sunshine Loans promotes “express loans” up to around $2100, settled promptly after approval.