The Australian Securities and Investments Commission (ASIC) say it's "resolute about putting an end to the business models" of Cigno Australia, a company it has taken to court three times over various illegal lending models.
To date, a number of Cigno loan models have been banned after the regulator stepped in, including a product that charged the equivalent of 800% annual interest in fees.
At a Senate estimates hearing in November, ASIC deputy chair Sarah Court described how Cigno has continually manoeuvred to stay a step ahead of the regulator.
"There have effectively been a number of business models. That's the issue. Each of these business models has provided loans to consumers in a particular way that [perhaps speaking broadly] has been designed in a way … to use loopholes to avoid having to comply with the important consumer credit protections."
"The challenge for ASIC is … there are vulnerable consumers significantly impacted. We go to court. The court makes the finding 'This is a breach of the law'. The company then re-manifests. It says 'Oh, here's another business model'. And again [it's] very slightly designed to be outside of the provisions of the law," Court says. "We are resolute in our determination to put an end to these business models."
Cigno's long history of dodgy lending
Cigno Australia has been around for many years offering consumer loans. As an unlicensed and unregulated lender, Cigno couldn't charge interest, but the company has more than made up for that with high fees.
The company is headquartered on the Gold Coast in Queensland and is run by former Super Rugby player Mark Swanepoel.
Cigno Australia has been in ASIC's sights for a number of years, and has been the focus of several court cases brought by the regulator, one of which Cigno won. But in May 2024, in the most recent case to go through the courts, the Federal Court ruled that Cigno had engaged in credit activity without a licence and charged fees that exceeded the cap on payday loans.
Cigno Australia has been in ASIC's sights for a number of years, and has been the focus of several court cases brought by the regulator
"We took this action because we were concerned that the Cigno Australia and [partner company] BSF Solutions 'No Upfront Charge Loan Model' provided short-term loans totalling over $34 million and charged over $70 million in fees to more than 100,000 consumers between July 2022 and December 2022," deputy chair Sarah Court said at the time of the judgement.
ASIC is seeking a court-ordered injunction that would prevent Mark Swanepoel and his business partner Brenton James Harrison from being allowed to carry out any business engaged with credit activity into the future. The court has yet to rule on this request or any other penalties.
Cigno Australia's social media accounts appear to have gone inactive, with the last Facebook post occurring in 2023. However, CHOICE has seen evidence of the company still sending emails to former clients.
While Cigno has appealed the Federal Court ruling against it, CHOICE can reveal Mark Swanepoel's brother Ryan Swanepoel, who was not the subject of the Federal Court action, has set up a new business that is using Cigno's email domain to collect new clients.
New lender Quickle using Cigno email domain
In July 2024, Queensland resident Rachel got an email from Cigno informing her of the court's ruling against it. "The Court has made orders that prohibit Cigno Australia and BSF Solutions from collecting any further fees, charges or other amounts from you," the email read.
She was initially relieved, thinking that the company who had provided her with multiple high-fee loans since 2020 was gone.
"I lived a pretty high flying life until I ran out of money and then I was just borrowing left, right and centre," says Rachel. "Cigno was terribly easy, so for me, it was a bit of a trap, for sure."
The email said it was from Cigno ... but a hyperlink in the email went to the page of another company called Quickle
"I just thought finally, as I don't want to ever have anything to do with them again. It's terrible to think that they just have been able to continue for so long," she says.
However, in August 2024, she received another email asking if she needed help to "break free from this cycle" of "skyrocketing bills" and "endless price hikes". The email said it was from Cigno, and it came from the company's domain name, but a hyperlink in the email went to the page of another company called Quickle.
Quickle's slick website offers Australians who are "short on cash" access to up to $75,000 through its network of loan providers. The company says it doesn't charge people any fees to act as a go-between between them and the loan provider, but may receive an intermediary fee from the provider themselves.
Quickle's slick website offers Australians who are 'short on cash' access to up to $75,000 through its network of loan providers
CHOICE has not been able to obtain documents detailing Quickle's loan model, and the company did not respond to requests for more information.
CHOICE is not suggesting that Quickle or Ryan Swanepoel are engaging in the illegal conduct that was the subject of the recent Federal Court ruling.
However, Rachel says she is outraged this new entity emailed her using a Cigno email address and a Cigno email footer, and then linked to Quickle's website.
"In this financial climate, when people are struggling, I'm appalled that they don't seem to care," she says.
Who is behind Quickle?
Cigno Loans was once a trading entity of Cigno Australia, but its website now says it is a business name of a company called FTA Data Solutions. Quickle's website also says it is a business name of FTA Data Solutions.
The director and secretary of FTA Data Solutions is listed as Ryan Swanepoel. Unlike the previous version of Cigno, FTA has been authorised by a credit licensee, Finance & Loans, the director of which is also Ryan Swanepoel.
A search of ASIC documents finds that FTA Data Solutions was first registered in August 2023. Its registered address is a co-working space on the Gold Coast.
ASIC is aware of a new credit model being operated through the website Cignoloans.com.au
ASIC executive director Chris Savundra
The contact address for the company is listed as the same Gold Coast address as another two companies of which Ryan is the sole director, Swan Management Services Pty Ltd and Swan Group Holdings Pty Ltd.
Alongside Ryan as director, both Swan Management Services and Swan Group Holdings have listed Mark Swanepoel's business partner Brenton James Harrison as their company secretary.
Under questioning at the Senate estimates hearing in November 2024, ASIC executive director Chris Savundra shared the regulator's awareness of FTA Data Solutions.
"ASIC is aware of a new credit model being operated through the website Cignoloans.com.au, which appears to be operated by a credit licensee Finance and Loans Proprietary Limited. Its credit representative is FTA Data Solutions Proprietary Limited … We are currently considering that model and its compliance with the National Consumer Credit Protection Act and the ASIC Act," he said.
CHOICE sent questions to Cigno Australia and attempted to reach Quickle, but neither business responded.
ASIC's whack-a-mole with predatory lending models
The Consumer Action Law Centre (Consumer Action) in Melbourne has been helping clients of Cigno's challenge their unaffordable and at times, as the Federal Court has found, illegal debts for years. Consumer Action's director of policy and campaigns Tania Clarke says the number of calls they have received over their support lines relating to Cigno places the company among the most "predatory fringe lenders" on the market.
The Cigno saga demonstrates that there are too many loopholes in our credit and corporation laws
CHOICE head of policy Tom Abourizk
Clarke is concerned to hear of a company looking to pick up new clients with Cigno's emailing system.
Tom Abourizk, head of policy at CHOICE, says Cigno has made a "mockery" of Australia's credit laws for years.
"Over the years, ASIC has used a range of enforcement powers in attempting to stop Cigno in its various forms, but every win has just led to another reincarnation using a slightly different legal structure or company," he says.
"The Cigno saga demonstrates that there are too many loopholes in our credit and corporation laws for bad actors to exploit. The complex loopholes in our credit laws need to be closed, and personal liability should be easier to impose."
Do you know more about Quickle? Contact CHOICE Investigative Journalist Jarni Blakkarly at [email protected]
Stock images: Getty, unless otherwise stated.
