Regulatory Alerts2026-04-17
Federal Court Orders Cigno Australia and BSF Solutions to Pay $7 Million in Penalties for Credit Act Breaches
The Federal Court has ordered Cigno Australia, BSF Solutions, and their respective directors Mark Swanepoel and Brenton Harrison to pay a combined $7 million penalty for engaging in credit activity without a licence and charging prohibited fees. ASIC Chair Joe Longo stated that the companies' No Upfront Charge Loan Model was designed to sidestep consumer protections, having charged consumers over $90 million in fees between July 2022 and May 2024. The penalty orders follow the dismissal of appeals by the Full Federal Court and the High Court, upholding the initial finding that the defendants denied consumers important protections under the Credit Act and Credit Code.
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