ASIC has been trying to shut down these 'predatory' lenders for years. Will it finally work?
Laura Platt was in desperate need of money to fix her car when she saw an advert for Cigno, which resulted in a “quick loan of up to $1,000.” Key points: ASIC has banned the types of loans Cigno offers but the company appears to have prepared a new loan model Cigno made $60 million in five-and-a-half-month fees, court documents show Consumer advocates say national credit laws need updating to close legal loopholes Platt uploaded a bank statement to Cigno’s website and a few hours later $300 went into his bank account. “It was approved right away. And I didn’t really see the fine details,” Platt said. Shortly after getting his first loan with Cigno, he managed to apply for $200, because he thought he had paid off his original debt. However, Platt did not realize that his $300 loan also incurs high bookkeeping costs. He has struggled to repay the loan. Two years later, after being hit with bookkeeping and late fees, he ended up paying Cigno $2,600, of which he still owes $32. “[I am] r