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Cigno Australia Penalised for Unlawful Payday Lending Practices

Understanding the $7 Million Fine and Its Implications for Consumers

Cigno Australia Penalised for Unlawful Payday Lending Practices?w=400

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The Federal Court has imposed a $7 million fine on Cigno Australia and BSF Solutions for operating an illegal payday lending scheme that breached Australian credit laws.
Each company was fined $3 million, with their respective directors, Mark Swanepoel and Brenton Harrison, receiving individual fines of $500,000.

The Australian Securities and Investments Commission (ASIC) initiated legal action against these entities, highlighting that the scheme generated over $91 million in fees and charges from consumers. This substantial penalty underscores ASIC's commitment to protecting consumers from predatory lending practices.

Justice Ian Jackman noted the seriousness of the contraventions, emphasizing the significant loss and harm caused to consumers. Despite the directors seeking legal advice to navigate complex credit laws, the court determined that their actions warranted substantial penalties to deter future misconduct.

For consumers, this case serves as a critical reminder of the importance of understanding the terms and conditions associated with payday loans. Such loans often come with exorbitant fees and can lead to a cycle of debt that is difficult to escape. It's essential to explore alternative financial solutions, such as debt consolidation loans, which may offer more manageable repayment terms and lower interest rates.

In light of this ruling, consumers are encouraged to exercise caution when considering short-term lending options and to seek financial advice to ensure they make informed decisions that align with their long-term financial well-being.

Published:Friday, 12th Jun 2026
Author: Paige Estritori

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