Cigno

ASIC is investigating whether a third lending model set up by "predatory" payday lender Cigno is legal, while the company takes its fight to be exempt from ...

"There are costs for the broader community because we end up with people in financial and mental stress. They're horrible," Ms Platt said. On Monday, Cigno and BHF Solutions lodged an application to seek leave from the High Court to appeal against the Federal Court's decision. "ASIC is aware that Cigno (Cigno Australia Pty Ltd) continues to offer services to arrange loans on its website. It's an avoided credit lending model. And there is no legal reason that it should go ahead." She has struggled to repay the loans. ASIC is looking at the lending product and model including whether the conduct is in breach of the Product Interventions Orders," a spokeswoman for ASIC said. "As soon as the regulators try and close one hole in the law, they find another," she said. On its website, Cigno advertises products like "Centrelink Loans with No Credit Check", "Bad Credit Centrelink Loans", "Payday Loans for Centrelink Customers" and "Online Loans for Centrelink Customers". The judgement included the example of a woman who, assuming she made her payments on time, was expected to pay $177.75 in fees for a $200 loan and $231.80 in fees for a $300 loan. It came after ASIC won in its appeal before the Full Federal Court against Cigno and BHF Solutions last month, in a decision which sided with the regulator's position that the companies were offering a form of credit captured by the National Credit Code because of the amount of fees they charged.