Legal advice reduces $7 million penalty for predatory payday loan scheme
IP
Iris Prescott
predatory lending crackdown · Apr 17, 2026
Source: DojiDoji Data Terminal
Consumers were denied protections under the Credit Act and Credit Code, including limits on fees and charges, through a payday lending scheme that generated more than $90 million in fees between July 2022 and May 2024. The Federal Court has ordered Cigno Australia and BSF Solutions to pay $3 million each, and their directors, Mark Swanepoel and Brenton Harrison, to pay $500,000 each.
These penalties follow findings that the companies used a "No Upfront Charge Loan Model" to provide credit without an Australian Credit Licence. ASIC chairman Joe Longo stated the model was designed to sidestep consumer protection laws. Justice Ian Jackman noted that the contraventions were serious and caused loss and harm to consumers in substantial amounts.
The $7 million total penalty was reduced because the respondents sought legal advice from national law firm Piper Alderman. Justice Jackman inferred that the respondents genuinely intended to act lawfully because they sought advice after previous legal battles with regulators.
While ASIC highlighted $60.5 million in payments to related companies, the court found that joint profits to the two companies were only $3.7 million. Justice Jackman stated there was no evidence of financial benefit obtained personally by the directors. The total penalty is $7 million.