Verifying an Australian Credit Licence on ASIC Connect Before You Apply for a Payday Loan

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 it, a lender is not legally allowed to offer credit, and you may be left without any consumer protections.

As first-time borrowers, we often focus on approval speed or loan amounts. But there is something far more important: is the lender even legally authorised to lend? Cashpal  doesn’t just comply with regulations. We advocate for informed borrowing. We are a fully licensed and regulated Australian lender offering payday loans and personal loans that follow strict ASIC standards.

What Is an Australian Credit Licence?

An Australian Credit Licence is issued by the Australian Securities and Investments Commission (ASIC) under the National Consumer Credit Protection Act 2009. Lenders who hold an ACL are authorised to provide credit contracts, offer credit assistance, and act as intermediaries between consumers and lenders. An active ACL ensures that the lender must follow responsible lending obligations and transparency rules.

How to Verify a Credit Licence on ASIC Connect

Verifying a credit licence is simple and takes just a few minutes. Here is how you can do it:

1. Go to the ASIC Connect Professional Registers and visit https://connectonline.asic.gov.au
2. Search for the lender by their legal name, trading name, ABN, ACN or credit licence number.
3. Select ‘Credit Licensee’ Register.
4. Review key licence details, including:
   • Licence status (must be ‘Current’)
   • Licence number
   • Entity name and registered business name
   • Authorisations to confirm credit activity

What If a Lender Is Not Licensed?

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.

CashPal Meets the Standard and Goes Beyond

CashPal is an ASIC-licensed Australian lender offering payday loans and personal loans nationwide. Our ACL is active, our processes are transparent, and our fees are clearly disclosed upfront. We do not just meet minimum requirements. We exceed them.

We believe borrowers should know their rights and how to identify lawful lenders. That is why we are proud to be fully compliant and listed on ASIC Connect.

Red Flags and Tactics Used by Unlicensed Lenders

1. They claim their licence is “in progress.”
2. They only operate through social media or messaging apps.
3. Their business name is suspiciously similar to legitimate lenders.
4. They avoid paperwork and formal contracts.
5. They advise borrowers not to look them up.

5 Key Benefits of Verifying a Lender’s Licence

1. Legal protection: You are covered by national consumer laws.
2. Transparency: You will know exactly who you are dealing with.
3. Complaint pathways: You will have access to AFCA.
4. Fair treatment: Responsible lending checks must be performed.
5. Peace of mind: You are not dealing with a scammer.

The Role of ASIC and AFCA

ASIC (Australian Securities and Investments Commission) monitors credit providers. When you borrow from a licensed lender, ASIC can take action if laws are breached. Additionally, AFCA (Australian Financial Complaints Authority) offers free dispute resolution services. If a lender is not part of AFCA or listed on ASIC Connect, avoid them entirely.

6-Step Verification Checklist

1. Visit ASIC Connect and select the ‘Professional Registers.’
2. Enter the lender’s name, ABN or ACL number.
3. Confirm the licence is marked as “Current.”
4. Check for matching business details.
5. Look at the authorisations to ensure payday lending is listed.
6. Confirm AFCA membership via the lender’s website.

Why Verifying Australian Credit Licence Matters

Skipping this check is a common mistake for first-time borrowers. In the rush for fast cash, you might overlook legitimacy. But 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.

Final Thoughts

Borrowing should always begin with due diligence. Verifying a lender’s Australian Credit Licence ensures you are dealing with a legitimate provider. It protects you from illegal contracts, unclear terms, and financial harm.

At CashPal, we take pride in being a transparent and responsible lender. We encourage every borrower to use ASIC Connect before applying for any loan. When it comes to finance, the safest step is always the smartest one.

FAQs

What is an Australian Credit Licence?

An ACL is 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, and the contract might not be enforceable. You may also face aggressive debt collection tactics.

Is CashPal licensed in Australia?

Yes. CashPal is a fully licensed payday and personal loan provider. Our licence is listed and current on ASIC Connect.