Rogue lender Cigno and Directors fined $7 million at Federal Court
Consumer Action Law Centre CEO Stephanie Tonkin has welcomed the decision today by the Federal Court to fine Cigno Australia and its director Mark Swanepoel, and BSF Solutions and its director Brenton Harrison a combined penalty of $7 million for engaging in credit activity without a licence and charging prohibited fees.
“Congratulations to the Australian Securities and Investment Commission (ASIC) for taking bold regulatory action against not only Cigno, one of the worst predatory lenders we have seen, and to its directors personally,” Ms Tonkin said.
“Cigno and BSF charged an extortionate $90 million in fees for their no up front charge loan product — specifically designed to avoid consumer protections, and knowingly used by people in financial distress. Financial counsellors across the country saw this financial harm and aggressive debt collection devastating consumers and families.
“We welcome penalties imposed against the companies and the two directors personally— and the court reasoned that the $7 million fine is a substantial deterent for this abhorent behaviour. The question is, after this years-long saga of harms incurred by thousands of Australians …. Will this be the final nail in the coffin for Cigno?” she said.
Media contacts:
Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
