Payday lenders Cigno and BSF Solutions have appealed a decision that found they provided credit without a licence, and rejected the claim that their loan model is analogous to buy now, pay later arrangements that don’t require a licence.
The Australian Securities and Investments Commission has prevailed in its case against payday lenders Cigno and BSF Solutions alleging they provided credit without a licence, with a judge rejecting their argument that their loan model was analogous to buy now, pay later arrangements that don’t require a credit licence.
ASIC has won orders declaring that Gold Coast-based BHF Solutions and Cigno needed a credit licence to issue loans to hundreds of thousands of customers, after the High Court tossed a challenge by the payday lenders.
The High Court won’t hear an appeal by payday loan providers Cigna and BHF seeking to challenge a Full Court judgment that found they can’t dodge the obligations contained in the National Credit Code through their lending model.
Payday lenders BHF Solutions and Cigno are fighting ASIC’s bid for an injunction barring them from breaching consumer credit laws, with BHF claiming it should not be exposed to contempt.
The corporate regulator will challenge a bid by payday lenders Cigno and BHF to stay its case pending their appeal to the High Court.
Payday lenders Cigno and BHF have filed High Court challenges to a judgment which found they could not bypass lender obligations contained in the Credit Code, warning the judgment could subject buy now, pay later schemes to the Code.
ASIC is challenging the dismissal of its enforcement action against payday lenders Cigno and BHF Solutions in a decision that found the companies did not need a licence to issue loans to hundreds of thousands of consumers.
A court has dismissed ASIC’s enforcement action against payday lenders Cigno and BHF Solutions, finding the companies did not need a licence to issue loans to hundreds of thousands of consumers.
Facing an ASIC enforcement action over alleged breaches of Australian credit laws, payday lenders BHF Solutions and Cigno claim they did not need a licence to issue loans to hundreds of thousands of consumers.