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Federal Court Halts Cigno Australia's Unlicensed Lending Operations

Implications for Borrowers and the Importance of Licensed Lenders

Federal Court Halts Cigno Australia's Unlicensed Lending Operations?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Federal Court of Australia has issued permanent injunctions against Cigno Australia Pty Ltd and BSF Solutions Pty Ltd, preventing them from engaging in unlicensed credit activities and charging prohibited fees.
This ruling follows findings that, between July 2022 and October 2023, the companies provided loans totaling $34 million to over 100,000 consumers, while charging fees exceeding $70 million, all without holding an Australian Credit Licence.

The court also determined that directors Mark Swanepoel of Cigno Australia and Brenton James Harrison of BSF Solutions were involved in these legal breaches. Effective from May 24, 2024, the injunctions prohibit the companies from demanding, receiving, or accepting fees or charges related to credit provided under their 'No Upfront Charge Loan Model.'

This case underscores the critical importance of borrowing from licensed and reputable lenders. Unlicensed lending practices can lead to exorbitant fees and potential legal complications for borrowers. Individuals seeking loans, especially those with limited or poor credit histories, should ensure they engage with lenders who hold a valid Australian Credit Licence to safeguard their financial interests.

Published:Wednesday, 29th Oct 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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