ASIC is taking legal action against two payday lenders, alleging they "conned borrowers, charging interest rates of up to 160 per cent", according to a report aired last night on ABC TV program The Business.The ABC reported that the two companies, named as Teleloans and Finance and Loans Direct, were set up "to work together" - apparently through the use of offshore websites - to dodge new federal rules that limit the amount of interest payday lenders can charge. An RMIT research project cited by the ABC indicated that one in five of the 70 online payday lenders operating in Australia are breaking the law.ASIC said the case will test the legal effectiveness of the offshore websites that online payday lenders are using - a situation that ASIC deputy chair Peter Kell said "does pose regulatory challenges".The two companies are due in court later this month, the ABC reported.