It's hard to get a loan from a traditional bank when you don't have assets that show your capacity to repay. If you're in this situation, you might be inclined to turn to a non-bank lender. There are many in Australia, including MoneyMe, whose advertising seems to be everywhere at the moment. 

MoneyMe has significantly upped its investment in marketing in recent years, and it seems to be working. Since listing on the ASX in 2019, MoneyMe has grown more than ten-fold. 

Since listing on the ASX in 2019, MoneyMe has grown more than ten-fold

About 38% of the loans MoneyMe approved in the 2024–25 financial year were unsecured, meaning the lender was taking a chance on the borrower's ability to manage the debt. That's not unusual with lenders, but MoneyMe's marketing, along with that of similar players, seems to target people willing to pay a high price for a quick loan. 

The fees and interest rates with non-bank lenders often catch borrowers by surprise. And it's not just MoneyMe, but the entire non-bank loan sector that combines strong marketing strategies with high-cost credit to drive profits. 

Extensive broker partnerships 

MoneyMe opened its doors in 2013 and is a relatively small player in the non-bank sector, but it has lent out a lot of money – $1.6 billion at end of the 2024–25 financial year, up around 28% compared to the previous financial year.  

Even without its marketing efforts, this ambitious lender has considerable reach. Most of MoneyMe's loans are financed through its Autopay vehicle platform ($911 million in the 2024–25 financial year), and it has partnered with around 4200 dealers and loan brokers, who refer customers to this financing option, while around 3200 brokers refer customers to its personal loans options, which are offered through both MoneyMe and its subsidiary, SocietyOne. 

At the end of the 2024–25 financial year, MoneyMe had lent out $1.6 billion

MoneyMe says its target market is clients who are willing to make payments over an extended period and can manage interest rate increases. But, of course, some get in trouble along the way and aren't able to keep up with the payments. In the 2024–25 financial year, MoneyMe moved from outsourcing debt collection to doing it in-house, which improved recovery rates by 36%.

Loans within the hour 

To qualify for a MoneyMe loan you need to be at least 18 and have some income. Having a black mark on your credit record indicating a previous problem with paying off debt won't automatically disqualify you. You can potentially borrow up to $70,000. The minimum you can borrow is $5000.

The interest rate would likely be high if your assets are low

This is known as a low-doc loan – one that you qualify for with minimal documentation of your financial position. Mainstream lenders such as banks generally require more proof of your creditworthiness than non-bank lenders, though they also offer unsecured and low-doc loans. And the responsible lending rules – which require lenders to ensure loans are suitable for a client's financial situation – apply to all financial licence holders.    

You can get your MoneyMe loan quickly – perhaps within the hour if you qualify – but the interest rate would likely be high if your assets are low. 

Non-bank lenders are often the last resort for people who can't get a loan elsewhere.

Access to your bank account and screen scraping

The way the MoneyMe loan approval process works has raised concerns among consumer rights groups that regularly hear from people in financial distress.  

As with so many online lenders these days, it's all automatic – and in this case, potentially invasive. MoneyMe asks for your bank account login details and checks the assets and liabilities in your account using technology from a firm called Proviso (owned by the credit rating agency Illion, which is in turn owned by the Ireland-based credit rating agency Experian). 

This is also known as screen scraping, and it's a controversial practice that financial counsellors say is outdated and unsafe. MoneyMe also gives you the option of mailing in bank statements, though it advises that the application process will take longer. 

MoneyMe asks for your bank account login details and uses screen scraping, which financial counsellors warn is outdated and unsafe

In addition to looking at your bank account, a MoneyMe spokesperson tells CHOICE that interest rates are based on a borrower's Equifax credit profile, "consistent with standard industry practice, including major banks". The weaker the profile, the higher the interest rate.

A MoneyMe spokesperson tells CHOICE that its screen-scraping provider is a service "widely used by the industry to assist with the affordability assessment as part of responsible lending checks".

It's all made to be as frictionless as possible, but maybe a bit of friction isn't a bad thing where borrowing money is concerned – especially when you don't have a lot of it to begin with.

High fees and interest rates

As with many other non-bank lenders that promise quick money (or 'same day loans'), MoneyMe loans are generally expensive. For loans up to $15,000 there's a loan establishment fee of $395, which increase to $495 for loans up to $70,000. In both cases, there's also a $10 monthly fee. 

All of this is on top of the interest you'll pay, which can apparently range from 5.99% (or a 6.70% comparison rate, which factors in the fees) to 24.49% (25.90% comparison rate). We've also seen reports of MoneyMe comparison rates of 26.99%. MoneyMe declined to answer our questions about its range of interest rates.

If you paid off a $70,000 loan at 25% interest over five years, you'd end up paying around $123,856

Paying 25% interest per year on any loan makes it very pricey. If you borrowed $5000, you'd end up paying back approximately $7517 if you paid it off in three years. If it took you five years to clear your debt, you'd be paying back almost twice as much as you borrowed, or $9405. 

If you paid off a $70,000 loan at 25% interest over five years, you'd end up paying around $123,856. These are only estimates – the exact amounts would depend on a number of variables for each customer. 

Loans at these rates for people who can't pay off the principal can spell financial disaster. 

Collective warning from consumer advocates

MoneyMe's lending practices have been a cause for concern among consumer rights groups.

After hearing concerns about MoneyMe's approach to approving loans, we contacted three of Australia's most prominent consumer advocacy organisations – Financial Counselling Australia (FCA), the Financial Rights Legal Centre (FRLC) and the Consumer Action Law Centre (Consumer Action). 

Director of casework at FRLC, Alexandra Kelly says the organisation receives 10 to 20 calls a month from MoneyMe customers who find themselves falling behind on loan repayments or have other issues, which is a lot of calls about the same lender.  

"It is difficult to say whether the volume of calls is reflective of their market share, or a sign of problems with their lending," Kelly says. "We can say, anecdotally, that some clients have struggled to access appropriate hardship solutions on their own and have had difficulty engaging with MoneyMe."

The lender's automated loan approval process raises particular concerns. "They may be 'risk rating' consumers – whereby high interest rates and fees are charged because they know these consumers have less ability to shop around and get better priced credit. The theory is that they charge these higher fees to account for riskier credit," Kelly says. 

She acknowledges that MoneyMe duly discloses its fees and interest rates on its website and contracts and that its practices are not as problematic as other lenders the organisation has dealt with, but figuring out what the information means in practical terms would be difficult for many customers. 

High interest rates and fees are charged because they know these consumers have less ability to shop around and get better priced credit

FRLC director of casework Alexandra Kelly

"Having monthly ongoing fees and establishment fees – or annual fees for credit cards – on top of a higher than usual interest rate is expensive credit," Kelly says.

Compounding fees and interest means you can be paying interest on an increasingly larger amount of money as fees and interest add to the amount borrowed.  

"Few consumers would have the awareness to review their credit contract and understand the compounding nature of monthly fees and annual fees and how this can increase the effective interest rate, and then use this information to shop around to get better deals," says Kelly. 

"For many, they may not be able to shop around." 

The most worrisome issue for Kelly and the FRLC is MoneyMe allegedly retaining access to clients' bank account details after the initial screen scraping. 

We have had many clients allege they were, at time of financial crisis, notified via push notifications to increase their credit

FRLC director of casework Alexandra Kelly

"Most consumers will not be aware they have allowed this access via their contract.It is information that could easily be misused by a lender to decline hardship, or to target advertising for increases to credit limits," says Kelly. 

"We have had many clients allege they were, at time of financial crisis, notified via push notifications to increase their credit." 

When asked about this, the MoneyMe spokesperson said the business "does not access bank statements for marketing purposes".

'Superficial' lending checks

Consumer Action lawyer Cat Miller has assisted many MoneyMe clients who took on loans that were out of sync with their financial circumstances. 

"We've had quite a few contacts from people who have had loans with MoneyMe that weren't affordable in our view," Miller says.

Miller cites the case of a client on a disability support pension who was approved for a MoneyMe business loan, though he didn't have a business. He used the money to buy a car but couldn't keep up with the repayments. 

"It had a pretty significant impact on him in terms of his ability to pay his bills and afford food. The loan was not suitable for him and it caused real hardship. He didn't have a business and the only verification they seemed to do was checking he had an ABN," Miller says. 

A lot of people are in financial stress, and when they take out loans that are unaffordable, it just compounds it

Consumer Action lawyer Cat Miller

The MoneyMe clients that Consumer Action hears from have generally been unable to access credit from mainstream lenders – something that's true for clients of other non-bank lenders as well. 

"A lot of people are in financial stress, and when they take out loans that are unaffordable, it just compounds it," says Miller. 

Miller says MoneyMe's responsible lending checks seem superficial. 

"They should be asking clients for information about their income and expenses and then taking reasonable steps to verify it. That's what the legal requirement is," she says. 

If they were doing more thorough checks, they wouldn't be able to approve as many loans

Consumer Action lawyer Cat Miller

"They should be looking at bank statements and payslips and asking for evidence of what their expenses are. In a lot of cases, I don't think that's been done. I think if they were doing more thorough checks, they wouldn't be able to approve as many loans."

Responding to these concerns, the MoneyMe spokesperson says the business has "a comprehensive responsible lending framework in place and services a customer segment with strong credit profiles. Each application is reviewed on its individual merits, subject to an affordability assessment."

Non-bank lenders on notice 

The Australian Securities and Investments Commission (ASIC) has its eye on the non-bank lending sector. 

A report in September this year revealed that ASIC had talked to several non-bank lenders about their hardship practices, including La Trobe Financial, Bluestone Mortgages, Firstmac, Plenti and Volkswagen Financial Services. (ASIC has collected data on MoneyMe but didn't engage with the business.)

In May this year, ASIC filed legal action against the non-bank home loan manager Resimac for its poor response to hardship cases. Following ASIC's action, non-bank lenders are set to adopt a new code of conduct for financial hardship practices.

The MoneyMe spokesperson says customers experiencing financial hardship can access support through phone, email, and live chat and that the lender's hardship approval rates are above the industry average.

Financial Counselling Australia senior advocate Deb Shroot says the experiences of financial counsellors who hear from MoneyMe clients paint a different picture. 

The loans are quick and easy ... it's easy to fall into a debt trap that is very hard to get out of

FCA senior advocate Deb Shroot

"The biggest concern is that MoneyMe is not very flexible with the hardship provisions they offer to clients having trouble paying their debts. Instead, they have a cookie-cutter approach. They don't have a dedicated hardship phone line for financial counsellors or clients to call, and it can take a really long time for people to get a response to a request for a hardship plan. MoneyMe's approach is inadequate and needs addressing," Shroot says. 

Along with other advocates, Shroot is concerned about the entire sector. 

"These non-bank loans are a very expensive form of credit, and a lot of the non-bank lenders charge hefty fees and interest rates," she says. 

"The loans are quick and easy, and financial counsellors urge people to be very careful of using them because it's easy to fall into a debt trap that is very hard to get out of."

Stock images: Getty, unless otherwise stated.

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