The Australian Securities & Investments Commission announced that the Federal Court has ordered Walker Stores Pty Ltd, trading as Snaffle and now in liquidation, to pay an AUD 33.5 million penalty for unlawfully overcharging consumers under credit contracts. The Court found the retailer miscalculated interest on more than 38,000 contracts, causing customers to pay nearly AUD 20 million more interest than allowed, and found that three sample contracts breached the 48% annual cost rate cap, with credit charges ranging from 88% to 103%. The contraventions occurred between September 2021 and February 2025, when interest was applied to the total contract amount rather than the unpaid balance. Justice Beach described the conduct as serious because of its repetition and scale, noting that many affected consumers relied primarily on Centrelink income. Walker Stores was also ordered to take reasonable steps to publish an adverse publicity notice and to pay ASIC's legal costs, with the Court's reasons for decision to be published in due course.
Australian Securities & Investments Commission2026-05-18
Australian Securities & Investments Commission secures AUD 33.5 million court penalty against Snaffle for unlawful credit overcharging
The Australian Securities & Investments Commission reported that the Federal Court ordered Walker Stores Pty Ltd, trading as Snaffle, to pay an AUD 33.5 million penalty for unlawfully overcharging consumers under credit contracts. The Court found the firm miscalculated interest on more than 38,000 contracts between September 2021 and February 2025, causing nearly AUD 20 million in excess interest and breaching the 48% annual cost rate cap. Walker Stores must also publish an adverse publicity notice and pay ASIC’s legal costs.