Slater and Gordon Lawyers' specialist Class Actions team is investigating a potential class action on behalf of consumers who have been charged exorbitant fees and interest after taking out pay-day loans from Cigno Loans and its related entities, including Gold Silver Standard Finance, BHF Solutions, MYFI Australia Pty Ltd and Fi-Fit Services.
In some instances these loans have led to debts for consumers of up to 990% of the principal loan amount. In these circumstances, the loan practices of these companies may be contrary to Australian consumer-protection laws, and where amounts have been charged unlawfully can give rise to a right for affected consumers to claim compensation.
The class action investigation also coincides with the Federal Court's decision on 15 April 2020 upholding ASIC’s use of its new product intervention powers to ban Cigno from operating its lending model in Australia. In this decision, the Court took particular note of ASIC's concluded view that this class of loan products “has resulted in significant consumer detriment to retail clients”.
Slater and Gordon Lawyers welcomes the decision to uphold ASIC's ban and will continue its work in the coming weeks to investigate potential legal avenues to seek financial redress for consumers affected by these loans.
To further develop its investigation, Slater and Gordon Lawyers is inviting affected consumers to make contact and register their details to provide information about the terms of the particular loans and repayments that affected them, and the amounts that have been charged by Cigno-related companies in particular circumstances.
If you have been affected by excessive fees or interest from a Cigno-related loan, please feel free to complete your details in the form below to arrange to be contacted by a member of the firm's Class Actions team.