All finance quotes are provided free (via our secure server) and without obligation. We respect your privacy.
CAR LOANS
AUSTRALIA
SHARE
Share this news item!
Cigno Australia and BSF Solutions Penalised $7 Million for Unlawful Lending Practices
Federal Court's Verdict Addresses Breaches in Payday Lending Regulations
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Federal Court has imposed a $7 million fine on Cigno Australia and BSF Solutions for operating an illegal payday lending scheme that violated Australian credit laws.
This significant penalty highlights the ongoing efforts to protect consumers from predatory lending practices.
Find out now if you qualify and compare
rates, offers and options from multiple lenders - without a credit check!
The court found that between July 2022 and May 2024, the companies charged nearly $90 million in fees through a scheme that circumvented established credit regulations. Despite previous legal challenges, the entities continued their operations, leading to substantial financial harm to consumers.
ASIC Chair Joe Longo reiterated the commission's commitment to safeguarding Australians from exploitative financial practices and holding violators accountable. Consumer advocates have welcomed the court's decision but question whether the penalty is sufficient to deter future misconduct.
The ruling was finalised on April 17, 2026
For individuals considering payday loans, this case underscores the importance of understanding the terms and potential risks associated with such financial products. It's advisable to explore alternative options and seek guidance from reputable financial advisors or counsellors to make informed decisions.
Consumers should remain cautious and report any suspicious lending practices to regulatory authorities. Staying informed about your rights and the obligations of lenders can help protect against financial exploitation.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
The Federal Court has imposed a $1.55 million penalty on Money3 Loans Pty Ltd for breaching responsible lending obligations in providing car finance to vulnerable consumers. This ruling underscores the critical importance of adhering to responsible lending practices, especially when dealing with financially susceptible individuals. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more
The Federal Court has imposed a $7 million fine on Cigno Australia and BSF Solutions for operating an illegal payday lending scheme that violated Australian credit laws. This significant penalty highlights the ongoing efforts to protect consumers from predatory lending practices. Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check! - read more
Welcome to Car Loans Australia, a proud member of the Financial Services Online network. Owned and operated by Clark Family Pty Ltd, A.C.N. 010 281 008, we are dedicated to helping Australian individuals and businesses find the best financial products, services, information, and advice available online.
calculatorWidget
knowledgeBaseWidget
Our Commitment
At Car Loans Australia, we do not endorse specific financial products or offer financial advice. Instead, we connect you with specialist financiers, insurers, or other financial advisors who can provide expert guidance based on your unique circumstances. Please note that Car Loans Australia may receive a fee or commission for these referrals.
Information and Guidance
The financial information on our website, including articles and news items, is intended for general informational purposes only. It should not be considered a substitute for professional advice. We strongly recommend consulting a qualified, licensed financial advisor to discuss your specific situation before making any financial decisions.
Connecting You with the Right Solutions
Our primary role is to facilitate connections between you and the right financial resources. Whether you need a specialized financier or an expert advisor, we aim to introduce you to professionals who can help you achieve your financial goals.
Contact Us
We are here to assist you with any questions or further information you may need. Please feel free to reach out to Car Loans Australia for assistance.
