Cigno Australia and BSF Solutions Penalised $7 Million for Unlawful Lending Practices
Federal Court's Verdict Addresses Breaches in Payday Lending Regulations
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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 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.
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