Scott Pape, famously known as the Barefoot Investor, has found himself inundated with legal threats following his scathing critique of a short-term lending company in one of his columns.

Recently, Pape took aim at MoneyMe, a non-bank lender, for celebrating their role in financing an extravagant $92,000 wedding through a personal loan. This criticism was made public in his column, where he didn’t hold back his disapproval.

In the article provocatively titled “This Will Get Me in Trouble,” Pape labeled a press release from MoneyMe as the most misguided he had encountered in over 20 years of his career, highlighting the absurdity of their PR approach.

He strongly condemned the press release, which seemed to hope he would write a feel-good story about the Brisbane couple whose wedding was partially paid for by a MoneyMe loan, describing it as completely out of touch with reality.

“In my 21 years of writing this column,” Pape noted, “this is by far the worst PR pitch I’ve ever come across.”

In the controversial press release, the bride was quoted saying she had felt the effects of the rising cost of living.

‘We spent more than we imagined … but we wouldn’t trade the memories for anything.’ 

Barefoot Investor Scott Pape (pictured) has criticised a short-term lending company for using newlyweds as promotional props to spruik its products

Brisbane couple Julie and Dean (pictured) partially funded their $92,000 wedding with a loan from MoneyMe 

The media release then went on to quote MoneyMe chief executive Clayton Howes touting the benefits of getting a personal loan during a cost of living crisis.

‘With cost-of-living pressures, personal loans are helping some Australians hold onto life’s important moments without compromising their financial stability.’

Mr Pape questioned how the company could claim high-interest loans during a cost-of-living crisis would not affect the borrower’s ‘financial stability’.

He said MoneyMe charges customers between 5.99 per cent and 26.99 per cent per annum with a $495 establishment fee and a $10 monthly fee.

‘MoneyMe are smart marketers. They’ve ticked corporate responsibility boxes, snaffling a B Corp certification – a sustainability credential demonstrating commitment to social impact. So, they’re using ‘positive impact’ language while encouraging people into debt for celebrations they can’t afford,’ he wrote.

‘There ain’t anything sustainable or socially impactful about taking out a MoneyMe loan.

‘It’s the same debt it always was, except now it comes with a B Corp badge and some feel-good language about ‘financial inclusion’.’

MoneyMe chief executive Clayton Howes (pictured) said the company closed the 2024-25 financial year with a loan book of $1.61 billion, an increase of nearly 30 per cent

Mr Pape likened the marketing to the trend in processed food to add protein to make it appear more nutritious. 

‘The product hasn’t changed – just the marketing. It’s still the same ultra-processed crap designed to clog your financial arteries while making someone else rich,’ he said.

MoneyMe has since removed the newlyweds’ post from its website and social media. 

In Monday’s column, which is sent to around 400,000 subscribers, Mr Pape said he was having the ‘week from hell’ partly due to his swipe at MoneyMe.

‘Right now I’m surrounded by more nuts than a fruitcake,’ he wrote.

‘I have legal letters firing around from a column I wrote last week.’

A MoneyMe spokeswoman said it did not have legal proceedings against Mr Pape. However the Daily Mail understands it has requested Mr Pape change the wording of his column.

‘MoneyMe has a comprehensive responsible lending framework in place and provides loans to customers with strong credit profiles,’ she said.

‘MoneyMe’s hardship approval rates are high and above the industry average.’

MoneyMe promotes personal loans on anything from holidays to cosmetic surgery with its socials using pictures of young people attending Coachella and Burning Man

The company’s advertising material says that it offers up to $70,000 with an online loan application process where ‘decisions are made in minutes, and funds can often be in your bank account the same day.’

Car loans have driven a lot of the company’s profit,with gross revenue hitting $58million in the first quarter of this financial year.

MoneyMe also promotes borrowing for anything from student loans and holidays to cosmetic surgery, using pictures of young people attending Coachella and Burning Man.

One blog post states a personal loan ‘could be a smart way to fund your festive activities this year’.

Mr Pape said financial counsellors had told him MoneyMe can often be a nightmare to deal with when clients get into trouble and were ‘worse than the banks’. 

Finance expert Sarah Wells said the new wave of short term loan products were no different to the pay day loans of yesteryear.

‘Encouraging someone to use tomorrow’s money to pay for today’s wants is not really disruptive it’s more disturbing,’ she said.

‘I’d like to see real disruption where providers consider something like meeting the need of the consumer.

‘Real disruption could look like – hey let’s do this loan but how about we teach you how to budget and look at advanced repayments and show you what $27 a day into super, a mortgage or even an investment may look like in 10 years time.’