ASIC has used its new product intervention power to stop a group of short-term lenders using a loan structure that it found caused significant consumer detriment.The lenders in question are Cigno Pty Ltd, Gold-Silver Standard Finance Pty Ltd, MYFI Australia Pty Ltd and BHF Solutions Pty Ltd.The regulator said it was the first use of the power targeted at a particular business model. In this case the credit provider and its associates were charging fees under separate contracts.Under the Credit Act, a short-term credit provider is exempt from credit licensing and responsible lending obligations if the fees charged for a loan of up to 62 days do not exceed 5 per cent of the loan amount and 24 per cent per annum interest.Under the loan structure in question, the credit provider's charges were within these limits but its associate charged upfront, ongoing and default related fees under a separate contract for management of the loan. ASIC said that when all charges were combined the cost was almost 1000 per cent of the loan amount.The product intervention order is an industry-wide order made by legislative instrument and will apply to any person attempting to use this loan structure. ASIC's product intervention orders remain in force for 18 months. With ministerial approval, an order can be extended or made permanent. The power allows ASIC to make individual and market-wide product intervention orders where there is a risk of significant consumer detriment. It can take a range of temporary actions including stop orders, banning a product or product feature, imposing sale restrictions and amending product information.The power covers financial and credit products.The new law was a response to a Financial System Inquiry funding that there were limits to ASIC's regulatory powers: it could only take action to rectify consumer detriment after a breach or suspected breach of the law had occurred; and its enforcement to address detriment had to be on a firm-by-firm basis.  The product intervention power, as well as design and distribution obligations, are set out in Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019, which was passed in April.