Payday-loan venture turns to cash prizes amid ASIC probe
A Gold Coast company targeted in a payday-lending regulatory investigation has reinvented itself as a business running daily cash-draw prizes of $250 for members paying as little as $5 a week.
The new operation for Cigno Australia, overseen by a former Super Rugby player, started in April but its director tells AFR Weekend the venture will be shut down following “unrelenting scrutiny” from the corporate regulator.
Cigno Australia’s latest offering.
It comes with the Federal Court this week issuing orders that a related entity involved in more than $100 million worth of loans and fees to battlers had breached credit laws, and the Australian Securities and Investments Commission saying it was still investigating Cigno Australia about another lending model.
Cash draws do not fall under ASIC’s purview and it has notified state gaming regulators about the new offer.
But Cigno Australia director Mark Swanepoel said he was comfortable the cash draws had adhered to the law. Cigno Australia’s website currently says clients can sign up to membership packs, ranging from $5 to $15 weekly, granting them entries to win daily cash draws of $250 or weekly draws of $1000.
It also offers access to cashback rewards on some purchases, “premium” blog content, and discounted goods for members, with an online shop showing “Cigno” branded gear ranging from baby bibs to iPhone cases.
It had last year advertised loans of up to $1000 to people “in need of cash” but Mr Swanepoel, 32, a former Super Rugby halfback, said consumer credit services had ceased in December.
Mark Swanepoel during his Super Rugby days. Melissa Adams
The new venture had started in April, running a membership program for three weeks in which $10,000 in prizes were awarded,
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