00:00A former super rugby player who enabled fast cash loans through his company Signo Australia
00:08by referring clients to another lender.
00:11People are resorting to these loans when they can't make ends meet.
00:15So we see Signo loans being used to afford essentials like putting food on the table.
00:22Or in the case of this woman, to fuel a gambling habit.
00:25Yeah, I was using them constantly for several years.
00:30Despite knowing the risky practice would also accrue fees.
00:34Sometimes you're not really focused on how much you're paying in fees, you're focusing
00:41on the fact that you don't have money to buy yourself lunch the next day.
00:45Court documents show the loans attracted no interest, but instead slugged clients with
00:51things like account keeping fees or default fees.
00:55One $250 loan attracted charges of $828.
01:01Many of these loans in fact were illegal and operating outside of credit laws.
01:07A civil court action by the corporate watchdog found in just 11 months over 100,000 customers
01:13were lent $34 million but charged more than $70 million in fees.
01:20A money trap the court found illegal because the lender in Signo Australia did not hold
01:26credit licences.
01:28The model operates in the fringes of regulation.
01:32While the venture was based from this no frills building in Southport, court and financial
01:37documents obtained by the ABC reveal a sophisticated operation.
01:42Bank accounts including from ANZ were used for loans.
01:46Big law firm Piper Alderman provided advice on loan structures while collection agency
01:51Milton Graham chased debts.
01:54Services that are all legal but under intense scrutiny.
01:59The widespread harm that Signo loans and related loans have caused to consumers is very well
02:06documented.
02:07I would suggest that businesses associating with Signo might reconsider that association.
02:13The companies are repealing the court's decision.
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