Federal Court Fines Cigno, BSF Solutions $7M for Illegal Payday Lending

0:00It's April 17th. This is Sydney News Today, your AI-powered local news. Federal court just slapped Signal Australia and BSF solutions with $3 million fines each, totaling $7 million bucks for an illegal payday. Lending Racket. Their directors, Mark Swannapel and Brinton Harrison each got hit with $500,000 penalties too. This scheme broke credit laws and raked in over $91 million dollars in fees and charges. ASIC nailed them after court findings earlier this year, with penalties dropping last Friday. The operation pushed small loans from $50 to $1,000 dollars, hitting folks hard with fees between July 2022 and May 20th. 24. Court records show the company's only netted $3.7 million in joint profits. And ASIC Chair Joe Longo called it a win against predatory lending, stressing accountability for companies and people alike. More advocates like Stephanie Tonkin from the Consumer Action Law Center say holding

1:01directors personally liable is huge, but after years of harm. They wonder if $7 million truly ends the saga. The judge labeled the breach as serious, causing real consumer pain with zero remorse shown. Still, penalties got dialed back some because the directors got advice from top lawyers at Piper Alderman, believing they were playing by complex. No direct personal payouts prove for the men. This sends a clear message to deter repeats, focusing on discouraging those company profits while keeping the sting sharp. ASIC's long fight against these outfits continues, protecting borrowers from the next cash trap.