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4 Things You’ve Heard About Fast Loans That Are Unfounded

When you’re finding your usual monthly budget isn’t quite going as far as it needs to, a fast payday loan could be the best way to get you to your next payment from work. You’ve probably heard a whole bunch of things about these kinds of fast payout loans from friends or family and wondered what’s true and what’s not. In this post, Cigno are letting you in on 4 top rumours that are simply not true. We’ll start with:

Short-term loans end up costing more than you borrow

You might have heard this one from a guy at the pub that’s had one too many. This isn’t how it works at all. At Cigno, we charge a fixed interest rate and show you all the charges that will apply to your account before you accept the loan. It’s true that the worst financial products out there try to hide fees as much as they can but that’s not how we like to do things. For us, being upfront with our prices is the best way to do business.

Spotting a scam in today’s online environment can be tricky, which is why we put so much effort into making everything as clear as day when it comes to our loan terms. The only way you can ever be charged more than the amount you borrow for a loan is if you ignore your account way past your payment deadlines and refuse to respond to contact. Anyone claiming payday loans are a rip-off have probably experienced the consequences of failing to make payments on time.

Payday loans aren’t regulated

Every financial solution you ever take needs to be from a credible provider regulated by the Australian Securities and Investments Commission. Fast loans like payday solutions are no different. There might be swarms of dodgy vendors out there trying to offer you deals that are too good to be true, but it’s best to stick to the most reliable sources.

Payday loan companies try to make you pay late

It doesn’t benefit anyone when borrowers pay late. The most important thing to us is that we only lend to people that we can clearly see are able to afford the repayments. Payday loans companies only succeed when their customers borrow what they need and pay back right on time. In it’s our best interest for the loan to go as smoothly as possible, which is why we do all we can to help borrowers make repayments as planned by issuing notifications to remind them of upcoming deadlines.

Even if you have issues paying, we’ll work with you to make new arrangements so that you can settle your account without having major penalties applied to the amount you owe. We’d rather build great relationships with responsible borrowers, than spend all of our time chasing people that have no intentions of paying back.

Payday loans are designed to rip people off

Nope. Actually our fast loans are designed to help people out when they need it most. Wealth isn’t always everyone’s path to happy living, but security and having a safety cushion can certainly make all the difference. If you don’t have a safety cushion fund and your budget is pushed to its limits, you might need a few dollars to get you through to your next payday.

That’s what a payday loan is really for. We’re not keen on helping people buy new watches, cars, or 50 inch TVs. We’re far more interested in providing people a means to access the emergency funds they need to cover urgent costs. If you plan on spoiling yourself with new stuff, it’s best to save up for it. If your survival and well-being is at steak, we’re here to help. Short-term loans are only suitable for those that really need the speed and practicality that come from having such a fast loan option.

Those are out 4 picks for now! There’s bound to more out there but these are some of the most common myths surrounding payday loans. If you need to apply for urgent funding, it’s important to only go ahead if you’re sure you really need the money as soon as possible. Think we’ve missed any? Feel free to let us know in the comments or get in touch.

Read more about fast loans here, or in our previous blog post: 4 Ways To Get A Fast Cash Advance

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.

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Please consider your own circumstances before you use Cigno. Please make sure you read our Privacy Policy, Terms and Conditions and this Financial Risk Disclaimer.

Cigno is a business name of FTA Data Solutions Pty Ltd ABN 95 670 814 221.

FTA Data Solutions Pty Ltd is an Authorised Credit Representative (Credit Representative No. 552387) of Finance & Loans Direct Pty Ltd Australian Credit Licence No. 390166.

Cigno is not a credit provider or a credit assistance provider. When you complete the Information Form, you are not applying for credit or any other particular goods and services. The completion of our Information Form also does not guarantee that you will be provided with credit or any other goods and services through our network.

Depending on the information you provide to us in the Information Form, we endeavour to assist you by providing your information to our intermediary partners. Where we provide your information to our intermediary partners, we may receive a fee.

If the information you provided to our intermediary partners meets their requirements, they may connect you with a credit provider, goods and/or services provider and/or specific products to meet your their needs (depending on the information your input into the Information Form).

Any application you ultimately make through a particular credit provider or goods and/or services provider is subject to that provider’s eligibility criteria and terms and conditions. The loan, credit, product or service may not be available to every person. We do not endorse or recommend any particular provider, product or service that you be connected with or offered. All statement on this website are general in nature and do not constitute financial, credit or legal advice (or any other advice).

Contact

SMS: 0429 213 774
Email: enquiries@cignoau.com.au
Post: PO Box 1810, Southport BC, QLD 4215
ABN: 95 670 814 221

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NOTIFICATION OF MISCONDUCT BY CIGNO AUSTRALIA

Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat