Payday Lending

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ASIC has been successful in its action against Cigno Pty Ltd (Cigno) and BHF Solutions Pty Ltd (BHF Solutions), with the Federal Court finding that both companies engaged in credit activities without holding an Australian credit licence. ASIC also obtained permanent injunctions against Cigno and BHF Solutions to protect consumers.

The decision follows a series of appeals during the litigation, including an unsuccessful bid by Cigno and BHF Solutions to seek special leave in the High Court in December 2022 (22-360MR).

Read More Cigno, BHF Solutions Found to Have Engaged in Unlicensed Conduct

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Cigno is exactly the sort of business the Australian Securities and Investments Commission had in mind when it asked for stronger powers to ban the sale of harmful financial products. This is a news item from The Conversation. It was originally published on 5th August, 2022. If you are experiencing financial hardship contact the National Debt Helpline on 1800…

Read More How ‘bad credit’ lender Cigno has dodged ASIC’s grasp

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South Australians will be better protected from unscrupulous payday lenders and those offering consumer leases, under draft legislation tabled in State Parliament on Friday. Attorney-General Vickie Chapman said there was a pressing need to act to protect South Australians from payday loan sharks as discussions on a nationwide approach have gone nowhere.  Last year all…

Read More SA takes the lead on unscrupulous payday lenders

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Consumer Action Law Centre (Consumer Action) and Financial Rights Legal Centre (Financial Rights) say ASIC’s overhaul of its responsible lending guidance is a welcome announcement in the wake of the devastating consumer harm exposed during the Banking Royal Commission.  Too many lenders, including banks, finance companies, payday lenders, and consumer lease providers have not effectively complied with legal obligations to ensure they do not provide borrowers with unsuitable loans. ASIC’s updated responsible lending guidance make existing laws clearer, easier to enforce and will help to hold…

Read More ASIC’s overhaul of responsible lending guidance should focus lenders on the welfare of borrowers

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Consumers’ Federation of Australia has joined a group of financial experts, community advocates, and service providers determined to see stronger laws implemented to protect Australians from irresponsible lenders. The Alliance’s statement: To the Australian Government: Every day our organisations deal with Australians who have been trapped in crippling debt due to high-cost fast loans and…

Read More CFA joins the Stop the Debt Trap Alliance

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The Federal Government is letting the worst and most harmful financial products in the community run wild, according to consumer advocates. It’s now one year, eight months, one week and fifteen days since the Government accepted recommendations to reform laws governing payday loans and consumer leases. Despite committing to bringing the reforms to Parliament by…

Read More Lobbyists beat the battlers on payday loans and rent-to-buy

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The following is a guest post from Denise Boyd, winner of CFA’s inaugural prize for the most impressive piece of consumer advocacy or research presented during the Soapbox session at this year’s National Consumer Congress. If we think about memorable advertising slogans, and the campaigns behind them, what is it about them that made them effective? Dumb…

Read More Inaugural CFA Soapbox Prizewinner – Watch Your Nuts!

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Consumer groups call for the Federal Government to take immediate action to protect payday loan and lease borrowers The Consumers Federation of Australia, CHOICE, Consumer Action Law Centre, Financial Counselling Australia, Financial Rights Legal Centre, Consumer Credit Legal Service (WA) and Good Shepherd Microfinance are calling for the Federal Government to immediately introduce legislation to better protect borrowers of toxic loans and leases and increase funding to financial counselling…

Read More 120 Day Delay Inflicting Greater Payday Pain