The Australian Securities & Investments Commission has commenced court action against Snaffle, operated by Walker Stores Pty Ltd, alleging it inflated the price of household goods and electronics and applied unlawful interest charges under its credit contracts. ASIC alleges the pricing model was used to circumvent the National Credit Code (NCC) Annual Cost Rate cap designed to protect consumers. Court documents cite three credit contracts where ASIC alleges the 48% Annual Cost Rate cap was breached, with cost and interest charges of between 60% and 103%, alongside alleged failures to disclose the cash price and true cost of credit as required by the NCC. ASIC also alleges up to 40,430 contracts may have incorrectly applied a flat interest rate to the full purchase price for the whole term, rather than calculating interest on the reducing unpaid balance. ASIC is seeking declarations of NCC contraventions, pecuniary penalties, injunctions and adverse publicity orders against Walker Stores.
Australian Securities & Investments Commission2025-05-22
Australian Securities & Investments Commission sues Snaffle over alleged inflated pricing and unlawful interest charges under consumer credit contracts
The Australian Securities & Investments Commission (ASIC) has sued Snaffle, operated by Walker Stores Pty Ltd, for allegedly inflating prices and applying unlawful interest charges on credit contracts, breaching the National Credit Code's 48% Annual Cost Rate cap. ASIC claims the pricing model circumvented consumer protections, with interest charges reaching 60% to 103% and failures to disclose true credit costs. Up to 40,430 contracts may have incorrectly applied a flat interest rate. ASIC seeks declarations of contraventions, penalties, injunctions, and adverse publicity orders.