Following ASIC's intervention, payday lender Fair Go Finance Pty Ltd has been hit with suppression orders totalling A$34,000 for overcharging interest and establishment fees on loans. Fair Go Finance will also refund around $34,500 to about 550 borrowers for interest and fees collected from them in excess of the maximum amount allowed under the National Consumer Credit Protection Act 2009.An ASIC statement, released yesterday, outlined how an investigation into Fair Go Finance's 'Flexi Loan' product flagged that the loans were set up so as to avoid the protections offered to consumers under the National Credit Act.Although the credit contracts stated the loans could be repaid over a three year period, in practice the consumer was required to repay the loan over a much shorter time - and this could be as short as 19 days, ASIC said. Borrowers were also charged a default fee if they failed to meet the shorter repayment terms.ASIC identified that Fair Go Finance charged establishment fees of more than twice the 20 per cent maximum allowed, and, in a number of instances the total amount repaid by consumers over the term of the loan exceeded the maximum amount allowed under the National Credit Act.Following ASIC's intervention, Fair Go Finance withdrew the Flexi Loan product.ASIC has had a particular focus on the payday lending sector in recent years including taking action to address avoidance models.