The Australian Securities & Investments Commission (ASIC) reported that Cairns pawnbroker Cash Lenders has been convicted and fined AUD 12,000 in the Cairns Magistrates Court, following a guilty plea, for engaging in credit activity without a licence. The Court found that between 24 July 2015 and 29 May 2020 Cash Lenders issued 9,641 pawn tickets that were effectively credit contracts because they included a term allowing the business to take debt recovery action for unpaid debts, which goes beyond a pawnbroker’s usual recourse of selling the pledged goods. ASIC said the firm charged extremely high fees and interest, used debt collectors, and represented loans as backed by pawned items that either did not exist or could not cover the loan value, and in some cases did not explain key contractual terms or confirm a consumer’s ability to repay. The matter was prosecuted by the Commonwealth Director of Public Prosecutions following a referral from ASIC, after the Indigenous Consumer Assistance Network raised concerns with ASIC.
Australian Securities & Investments Commission 2025-06-26
Australian Securities & Investments Commission secures conviction and AUD 12,000 fine against Cash Lenders for unlicensed credit activity
The Australian Securities & Investments Commission (ASIC) announced that Cairns pawnbroker Cash Lenders was fined AUD 12,000 by the Cairns Magistrates Court for unlicensed credit activity. Between July 2015 and May 2020, Cash Lenders issued 9,641 pawn tickets functioning as credit contracts, allowing debt recovery actions beyond typical practices. ASIC highlighted excessive fees, misleading loan representations, and inadequate contract term disclosures. The prosecution followed an ASIC referral, prompted by concerns from the Indigenous Consumer Assistance Network.