The Australian Securities & Investments Commission (ASIC) has accused the company of artificially raising the prices of products and overcharging on interest contracts.
According to ASIC, Snaffle is said to have imposed a hefty markup on items, added a non-existent delivery fee, included operating expenses, a profit margin, and other charges. These costs were all added before applying high interest, which resulted in what ASIC asserts is an illegal credit contract, she stated.
“We’re especially concerned about the impact on particularly vulnerable people and we think a significant penalty will clearly send that message.”
Consumer Action Law Centre chief executive Stephanie Tonkin says consumers have other options.
“There are far better products out there than Snaffle and other consumer lease products,” Tonkin said.
“There’s a no-interest scheme to help you access a fridge, or other white-goods, or other essential items.”
