Walker Stores credit licence cancelled after CSLR compensation payments

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Walker Stores credit licence cancelled

Highlights

ASIC cancelled Walker Stores' credit licence on 12 October 2026 after CSLR paid $4,106 and $18,310 to consumers due to unpaid AFCA determinations.
Walker Stores remains a member of AFCA until 12 October 2027, allowing continued consumer complaints despite the licence cancellation.
Since the CSLR's April 2024 launch, ASIC has cancelled ten AFS licences and eight credit licences, reflecting increased enforcement following compensation payments.

Cancellation follows unpaid AFCA rulings

As reported by ASIC, the regulator cancelled Walker Stores' credit licence on 12 October 2026 after the Compensation Scheme of Last Resort made two compensation payments linked to determinations the company did not satisfy. AFCA made the two determinations on 30 June 2026, and the CSLR paid $4,106 and $18,310 to the respective complainants on 23 September 2026 before notifying ASIC.

ASIC said it is required to cancel a licensee's credit licence when the business fails to pay an AFCA determination and the CSLR subsequently pays compensation. The regulator said the cancellation is not subject to discretion or merits review.

In the cancellation order, ASIC specified that Walker Stores must maintain its membership with AFCA for a further 12 months, until 12 October 2027. That means complaints about Walker Stores can still be lodged with the external dispute resolution body despite the licence cancellation.

Broader regulatory and consumer impact

This is not ASIC's first action involving Walker Stores. The regulator began Federal Court proceedings against the company on 21 May 2025, and on 18 May 2026 the court ordered a $33.5 million penalty over unlawful overcharging of tens of thousands of consumers under credit contracts.

The CSLR was established in June 2023 and began operating in April 2024. It can pay up to $150,000 to eligible consumers with an unpaid AFCA determination related to authorised personal financial advice, credit intermediation, securities dealing or credit provision, after those consumers complete the AFCA complaint process and take reasonable steps to recover compensation from the firm or credit provider.

ASIC said the Walker Stores decision continues a broader enforcement trend since the scheme began. Since the commencement of the CSLR, the regulator has cancelled ten AFS licences and eight credit licences.

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