Regulatory Alerts2025-07-10
ASIC successfully defends Cigno Australia and BSF Solutions’ Full Federal Court appeal
The Full Federal Court unanimously dismissed the appeal by Cigno Australia and BSF Solutions, upholding the Federal Court's finding that the companies engaged in unlicensed credit activity and charged prohibited fees. ASIC Chair Joe Longo confirmed the breach, stating the 'No Upfront Charge Loan Model' was designed to circumvent consumer protection laws while charging over $70 million in fees to more than 100,000 consumers. The matter will return to court for a penalty hearing, and the appellants have been ordered to pay ASIC's legal costs for the appeal.
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