Australian Court Hits Snaffle Operator With $21.7 Million Penalty Over Unlawful Credit Charges

Key Takeaways

• Federal Court Penalty: Walker Stores, which traded as Snaffle, was ordered to pay $21.7 million (AUD 33.5 million) for unlawfully overcharging consumers under credit contracts.
• More Than 38,000 Contracts Affected: The Court found the company incorrectly calculated interest on more than 38,000 contracts between September 2021 and February 2025.
• Consumers Overcharged Nearly $13 Million: Customers paid almost $13 million (AUD 20 million) more interest than legally permitted, in some cases nearly double the lawful amount.
• Credit Charges Exceeded Legal Cap: Three sample contracts examined by the Court carried effective credit charges ranging from 88% to 103%, exceeding Australia’s 48% annual cost rate cap.

Deep Dive

The Federal Court of Australia has ordered the operator of online retailer Snaffle to pay $21.7 million (AUD 33.5 million) in penalties after finding the company unlawfully overcharged tens of thousands of consumers through its credit contracts.

Walker Stores, now in liquidation, was found to have breached consumer credit laws by incorrectly calculating interest on more than 38,000 contracts between September 2021 and February 2025. According to the Court, the company applied interest to the total contract amount rather than the unpaid balance, resulting in customers paying almost $13 million (AUD 20 million) more interest than they should have under the law.

Justice Beach said the breaches were particularly serious given the financial circumstances of many affected consumers.

“The interest calculation contraventions are particularly serious in my view,” his Honour said in the ruling. “Many consumers have been identified as people for whom Centrelink was their primary source of income.”

The contracts were offered through Snaffle’s website, which sold household goods including appliances and electronics through installment payment arrangements.

The Court also found Snaffle’s pricing structure breached Australia’s statutory 48% annual cost rate cap on credit contracts. Three sample contracts examined during proceedings carried effective credit charges ranging from 88% to 103%.

In his remarks, Justice Beach said the scale and repetition of the conduct undermined the integrity of the consumer credit regime.

“The conduct is of repetition and scale which undermine the statutory regime and, in my view, substantial penalties are called for,” he said.

Australian Securities and Investments Commission, which launched proceedings against Walker Stores in May 2025, said the outcome reflected the regulator’s focus on predatory lending and misconduct targeting financially vulnerable consumers.

ASIC Deputy Chair Sarah Court described the conduct as “egregious misconduct” that affected tens of thousands of Australians.

“Consumers who enter these types of credit arrangements are often financially vulnerable,” Court said. “Charging unlawful interest can significantly exacerbate the customer’s difficult financial position.”

She added that the ruling should serve as a warning to businesses offering credit products.

“This outcome sends a clear message: businesses must comply with the law when offering credit, and not structure their business to avoid consumer protections,” Court said.

Alongside the financial penalty, Walker Stores was ordered to take reasonable steps to publish an adverse publicity notice informing consumers of the misconduct and to pay ASIC’s legal costs. Justice Beach’s full reasons for the decision are expected to be published at a later date.

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