Rogue lender Cigno and its Directors lose appeal to the Full Federal Court
Cigno Australia Pty Ltd and its directors’ appeal to the Full Federal Court has been dismissed today and costs awarded to the Australian Securities and Investment Commission (ASIC).
Consumer Action Law Centre CEO Stephanie Tonkin said the decision was significant because the original trial judge had found not only Cigno Australia, but also its Australian directors, Mark Swanepoel and Brenton James Harrison to have personally contravened the Credit Act.
“Thousands of people throughout Australia have suffered real harm because of the actions of this rotten company that managed to trade and phoenix again, and continue to cause harm by deliberately designing its business around consumer protections, so I am delighted with today’s decision,” Ms Tonkin said.
“Hopefully holding these directors personally accountable will mean this dodgy lender is finally gone for good. On behalf of all those consumers who were ripped off by Cigno and who don’t have the ability to stand up to this rogue business or its owners, I want to congratulate ASIC for taking strong enforcement action,” she said.
Quote attributable to Alexandra Kelly, director of casework at Financial Rights Legal Centre:
“This is a welcome decision. Business models – and the people crafting these models with the purpose of avoid key consumer protections – need to be shut down. We know that Cigno customers were vulnerable to being misled, and unaware of the true cost of these loans.
“Hopefully, this long game of whack-a-mole between ASIC and fringe lending models will finally end. We look forward to the outcome of penalty decision against the directors and the entities involved.”
Quote attributable to Dr Domenique Merrick, co-CEO of Financial Counselling Australia:
“We welcome today’s decision to reject Cigno’s appeal. Financial counsellors know all too well the harm caused by Cigno over years, and Directors need to be held accountable.
“Thousands of people were left paying massive fees at levels that never should have been allowed. In some cases, a $60 loan with Cigno could attract fees charged the same day of $420. People were ending up trapped in debt, repaying these loans many times over.
“Many financial counsellors and capability workers will be thrilled that this appeal has been unsuccessful. We want to commend ASIC for taking strong action.”
ENDS
Media contact:
Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
