Cigno says they help people get a short-term loan to solve their money issues. Cigno says it can help anyone including people on a low income and unemployed, students and pensioners easily get cash, a payday loan or short-term credit.

A Cigno loan looks like easy cash, but it is actually very expensive.  Cigno does not hold a licence to lend money, and it has been fined and banned multiple times for making unsuitable loans.

Stop paying your Cigno loan NOW

If you are still paying off a Cigno loan, it is very likely you have a legal basis to stop making payments. This toolkit will help you understand the legal reasons you can stop making further repayments and provide you with practical options.

The toolkit can draft a template letter for you to be sent to Cigno if that is appropriate in your case.

Cigno does not have a licence to lend money to anyone

Cigno does not lend money. A customer pays Cigno to arrange a loan with another business that can lend money.

When you borrow from Cigno you have to sign two contracts:

• • A service contract with Cigno Pty Ltd
  • A loan contract with another company

By separating the contracts, the loan repayments seem affordable. But the high fees in the service contract make the loan very expensive requiring you to repay an amount that can be many times the money borrowed.

The service contract

The service contract sets out the fees that you the borrower must pay Cigno for setting up and administering the loan. This contract can include establishment fees, administrative fees, and penalties. It all adds up- fast!

The Loan Contract

The loan contract sets out the amount borrowed, the interest on the loan and when repayments are due. The loan contract could be with any lender, but it is often with Gold Silver Standard Finance,  BHF Solutions Pty Ltd, or BSF Solutions Pty Ltd.

Cigno’s different loan types

Cigno has used at least three different arrangements over the years for its loans:

1. 1. Before 14 September 2019 – Short term credit with Gold Silver Standard Finance and BSF Solutions Pty Ltd
   2. After 14 September 2019 – Continuing credit with BHF Solutions Pty Ltd
   3. From late 2022- No upfront charge with BSF Solutions Pty Ltd

All three of these arrangements are designed by Cigno to try and avoid the legal requirements of the National Consumer Credit Protection Act 2009 (Cth).

What can I do about my Cigno loan? 

This tool will help you:

1. 1. Write to Cigno to cancel your loan repayments
   2. Write a complaint to ASIC.

If you want to stop Cigno taking payments from your bank account, you can tell your bank to stop the direct debit.

It is possible Cigno might take action to try and recover the payments it claims are outstanding under the contract. But in our experience this is very unlikely, especially if you have already repaid the amount you originally borrowed.

Even if Cigno tries to pursue any further amounts there are strong legal arguments for you to stop making any more payments.

If you have any questions, please feel free to call the Consumer Action Law Centre Legal Advice Line on 1800 466 477 between 10 am – 1 pm Tuesday – Thursday.