Online retailer Snaffle has had its credit licence removed by Asic after a Federal Court case into the overcharging of credit contracts to its customers led to a $33.5 million fine.

The case sought to determine whether Walker Stores, trading as Snaffle, had overcharged “tens of thousands” of customers with credit contracts. On May 18, the Federal Court found the retailer to be in breach of the National Credit Code.

“Between September 2021 and February 27, 2025, Walker Stores sold goods to more than 21,800 customers under credit contracts,” a statement on Snaffle’s website reads.

“These credit contracts did not comply with the law about how interest can be charged. Instead, Walker Stores used an unlawful ‘flat rate’ method to calculate interest. As a result, many customers were charged much more interest than they should have been.”

The court found some of the credit contracts charged an annual cost rate that exceeded the 48 per cent cap. The findings led to the $33.5 million fine.

Asic has since removed the credit licence of Walker Stores. The company’s most recent meeting of creditors was held in late February, following its entry into administration and receivership.

However, Walker Stores has been ordered to maintain its membership of the Australian Financial Complaints Authority (AFCA) for 12 more months to allow any outstanding complaints to be lodged.

Walker Stores has so far failed to make two payments determined by the AFCA. This led to Asic’s “compensation scheme of last resort” making payments of $4106 and $18,310 on its behalf.

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