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3 Big Threats To Avoid When Looking For An Online Loan

The rise of the internet has made a lot of things easier. When you’re short on cash, one of the first things you’ll likely do is have a quick search for an online loan using your phone of any other device. The thing is, the internet is full of options, both good and bad. In this article, we’re highlighting 3 huge threats you need to look out for when you’re on the hunt for an online loan.

Here we go!

No physical address

Whenever you deal with anyone whether it’s online or not, you need to know where they’re based and that they are a real company. You’re bound to come across at least one or two online loan companies that claim to offer dependable services but don’t actually have a physical address. This should be one of the first things you look for when you enter any website.

At Cigno Loans, we know how important it is provide customers outstanding customer service, especially when they need it most. This is why we offer our contact details and actual address so clearly on our website. What do you think it actually means when an online business doesn’t show you any contact details or a real address? It means they don’t have a base, it probably isn’t a robust team of professionals, and they definitely won’t have a dedicated team that’s on hand to help as needed. Don’t take the risk! Avoid these types of companies completely.

Payment upfront

This is a really cheeky one! There’s such a thing as a secured credit card, which requires a deposit payment made upfront, but an upfront cost for a loan is something else entirely. Credit checks are an important part of modern living and it’s common for people now to buy too much and overspend especially using credit cards. Even if your credit score is really bad, you still should never need to pay upfront costs to receive a cash loan.

At Cigno, we definitely never ask customers to pay anything upfront and we don’t check credit history either. The most important thing we need to see is your most recent bank statements. If you do consider an online loan with some kind of deposit structure, make sure it’s from a market leading company that comes highly reviewed by a mix of the largest financial advice resources out there. Taking a deal like this from an unknown brand is far too risky to even consider.

Companies that guarantee approval

There’s no such thing as guaranteed approval for any financial product. Any credible company will have some form of assessment for you to complete. A finance product that guarantees approval is like a doctors that guarantees to fix any and all afflictions under the sun – it’s just not feasible.

Our criteria is very simple. We need to see that borrowers are able to make the repayments that’ll come with their loan amount, and the best way to do this is by checking your monthly income. It’s in our best interest to make sure you can afford the loan you’re applying for. If someone doesn’t need to see any proof of your ability to repay, it basically means they have no interest in making sure the loan is appropriate for you. There’s only really one phrase that accurately describes these kinds of offers – “click bait”.    

There you have it! These are the three biggest threats when looking for a loan online. Strapped for cash? It’s always a good idea to watch the pennies, but there are certain circumstances where buying cheap or going for the most attractive options isn’t necessarily the best answer. The online environment makes it super easy to apply for loans, but you still need to protect yourself from scams.

Our online application process is designed to be as easy to complete and forthcoming with information as possible. We don’t believe in hiding facts away and absolutely want you to be 100% confident that you understand all the agreement details before you decide to accept the loan.

We hope this quick list has helped! Think we’ve missed anything? Feel free to get in touch or leave your ideas in the comments!  

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Read more about online loans with instant approval here, or in our recent blog post: Where To Get Online Loans With Instant Approval In Australia

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.

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Please consider your own circumstances before you use Cigno. Please make sure you read our Privacy Policy, Terms and Conditions and this Financial Risk Disclaimer.

Cigno is a business name of FTA Data Solutions Pty Ltd ABN 95 670 814 221.

FTA Data Solutions Pty Ltd is an Authorised Credit Representative (Credit Representative No. 552387) of Finance & Loans Direct Pty Ltd Australian Credit Licence No. 390166.

Cigno is not a credit provider or a credit assistance provider. When you complete the Information Form, you are not applying for credit or any other particular goods and services. The completion of our Information Form also does not guarantee that you will be provided with credit or any other goods and services through our network.

Depending on the information you provide to us in the Information Form, we endeavour to assist you by providing your information to our intermediary partners. Where we provide your information to our intermediary partners, we may receive a fee.

If the information you provided to our intermediary partners meets their requirements, they may connect you with a credit provider, goods and/or services provider and/or specific products to meet your their needs (depending on the information your input into the Information Form).

Any application you ultimately make through a particular credit provider or goods and/or services provider is subject to that provider’s eligibility criteria and terms and conditions. The loan, credit, product or service may not be available to every person. We do not endorse or recommend any particular provider, product or service that you be connected with or offered. All statement on this website are general in nature and do not constitute financial, credit or legal advice (or any other advice).

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SMS: 0429 213 774
Email: [email protected]
Post: PO Box 1810, Southport BC, QLD 4215
ABN: 95 670 814 221

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NOTIFICATION OF MISCONDUCT BY CIGNO AUSTRALIA

Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat