Verifying an Australian Credit Licence on ASIC Connect Before You Apply for a Payday Loan
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CashPal TeamLast updated 24 October 2025
Verify a lender’s licence before you apply
When applying for a payday loan in Australia, verifying that the lender holds a valid Australian Credit Licence (ACL) is not just a recommendation — it is essential. Without one, a lender is not legally allowed to offer credit, and you may be left without consumer protections. First-time borrowers often focus on approval speed or loan amounts, but the more important question is whether the lender is even legally authorised to lend. CashPal is a fully licensed and regulated Australian lender that follows strict ASIC standards.
What is an Australian Credit Licence?
An ACL is issued by the Australian Securities and Investments Commission (ASIC) under the National Consumer Credit Protection Act 2009. Lenders who hold one are authorised to provide credit contracts, offer credit assistance, and act as intermediaries between consumers and lenders. An active ACL means the lender must follow responsible lending obligations and transparency rules.
How to verify a licence on ASIC Connect
Verifying a credit licence is simple and takes just a few minutes.
- 1
Go to ASIC Connect
Visit the ASIC Connect Professional Registers at connectonline.asic.gov.au.
- 2
Search the lender
Search by legal name, trading name, ABN, ACN or credit licence number.
- 3
Select the register
Select the ‘Credit Licensee’ register.
- 4
Review key details
Check the licence status is ‘Current’, the licence number, entity name, and authorisations for credit activity.
If a lender is not licensed
What can go wrong
Unlicensed lenders may operate under the radar, often preying on financially vulnerable consumers. You may be charged excessive or illegal fees, left without any consumer protection, or subject to contracts that may be unenforceable in court.
Red flags of unlicensed lenders
They claim their licence is “in progress.” They only operate through social media or messaging apps. Their business name is suspiciously similar to a legitimate lender. They avoid paperwork and formal contracts. They advise borrowers not to look them up.
Five key benefits of verifying a lender’s licence
- Legal protection — you are covered by national consumer laws.
- Transparency — you know exactly who you are dealing with.
- Complaint pathways — you have access to AFCA.
- Fair treatment — responsible lending checks must be performed.
- Peace of mind — you are not dealing with a scammer.
The role of ASIC and AFCA
ASIC monitors credit providers and can take action if laws are breached. AFCA offers free dispute resolution services. If a lender is not part of AFCA or listed on ASIC Connect, avoid them entirely.
A 6-step verification checklist
- 1
Visit ASIC Connect
Select the ‘Professional Registers’ section.
- 2
Search the lender
Enter the lender’s name, ABN or ACL number.
- 3
Confirm ‘Current’ status
Make sure the licence is marked as Current, not suspended or cancelled.
- 4
Match business details
Check the registered entity matches what the lender advertises.
- 5
Check authorisations
Look at the authorisations to ensure payday lending is listed.
- 6
Confirm AFCA membership
Confirm AFCA membership via the lender’s website.
Why this matters
Skipping this check is a common mistake for first-time borrowers — in the rush for fast cash, it’s easy to overlook legitimacy. Verifying a licence saves you from costly mistakes, legal risks and predatory practices. Borrowing from licensed lenders like CashPal ensures your rights are protected, you are treated fairly and ethically, and you have recourse if something goes wrong. When it comes to finance, the safest step is always the smartest one.
Frequently asked questions
What is an Australian Credit Licence?+
A government-issued licence that authorises a business to provide credit legally in Australia.
How do I verify a lender’s ACL?+
Use ASIC Connect’s Professional Registers. Search the business name, ABN or ACL number and ensure the licence is marked as "Current".
What if the licence is suspended or cancelled?+
Do not borrow from them. They are legally restricted from offering any credit services.
Why is it risky to borrow from unlicensed lenders?+
You will not be protected by Australian consumer credit laws, the contract might not be enforceable, and you may face aggressive debt collection tactics.
Is CashPal licensed in Australia?+
Yes. CashPal is a fully licensed payday and personal loan provider, and our licence is listed and current on ASIC Connect.
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- MJ
- KZ