In Australian Securities and Investments Commission v Venture 5 Group Pty Ltd [2026] FCA 1278 the Federal Court of Australia imposed a penalty of $3.5 million against Venture 5 Group Pty Ltd (trading as CashnGo) regarding its use of, and reliance on, unfair contract terms in more than 47,000 standard form small amount credit contracts (SACCs) with consumers.
CashnGo admitted that, after a consumer missed a repayment, its Default Term and Authority Terms allowed CashnGo’s automated systems to monitor a consumer’s bank account balance, repeatedly attempt to make withdrawals to recover the missed payment, as soon as funds became available, without prior notice of the timing, frequency or amount of the intended unscheduled withdrawal, and undertake the Unscheduled Withdrawals Practice without giving consumers the ability to opt out.
CashnGo admitted, and the Court ordered, that those terms are unfair.
Each Indemnity Term would compel a consumer to indemnify CashnGo for any penalties or costs incurred by CashnGo in litigation involving the exercise of its right to conduct the Unscheduled Withdrawals Practice. Further, consumers would be required to indemnify CashnGo even in respect of CashnGo’s conduct that was intentional, negligent or dishonest.
The Limitation of Liability Terms would prevent consumers from enforcing their rights including for intentional or negligent acts by CashnGo which cause loss and damage to consumers.
The Court ordered that the Default and Authority terms are void from 14 September 2026 in all SACCs current consumer contracts. The Court also ordered that from 14 September 2026, CashnGo introduce replacement terms into its contracts, which will allow consumers to opt out of CashnGo’s Unscheduled Withdrawals Practice.
CashnGo also admitted, and the Court held, that its Limitation of Liability terms and Indemnity terms were unfair, and the Court declared those terms void from the start of all SACCs entered into with consumers from 20 April 2022, which means those terms should be treated as having never formed part of the contracts.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
