Between 2015 and 2020, Cash Lenders issued more than 9,600 unlawful pawn tickets to clients across Far North Queensland and the Torres Strait Islands. ASIC found that these so-called pawn agreements functioned as high-interest credit contracts, allowing the business to pursue customers through debt collectors—often for loans far exceeding the value of the goods pawned.
ASIC Deputy Chair Sarah Court said, “By operating unlawfully outside of the credit regime, Cash Lenders charged extremely high levels of fees and interest and used debt collectors while pretending the loans were backed by pawned items, which either did not exist, or could never cover the value of the loan. In some instances, Cash Lenders failed to explain key contractual terms of a loan agreement and did not confirm a consumer had the financial means to repay the loans.”
The case was brought to ASIC’s attention by the Indigenous Consumer Assistance Network (ICAN), which has long advocated for fair treatment of Indigenous consumers in the region.
“This is a significant win for the people we support who are experiencing vulnerable circumstances and extreme financial hardship,” said Jillian Williams, ICAN’s Operations Manager. “ASIC’s action sends a clear message to fringe lenders: exploiting people in financial hardship will not go unchecked. We applaud ASIC for holding Cash Lenders accountable, and we hope this result sets a strong precedent.”
One customer cited in the case took out a $700 loan and ended up repaying over $2,200—forcing her into further hardship and unable to afford essentials like food and electricity.
ICAN remains committed to financial justice and encourages anyone facing unfair lending practices to seek help through our financial counselling services or visit Moneysmart’s Indigenous cash loan resource.