A key retailer for First Nations people in regional Australia is planning to take the corporate watchdog to court after it slapped two stop orders on the company.

In late February, the Australian Securities & Investments Commission (ASIC) made an interim stop order preventing Coral Coast Distributors (Cairns) Pty Ltd (CCD) from having customers at its Urban Rampage retail stores enter agreements to pay for goods on credit through Centrepay deductions.

Centrepay is a Federal Government scheme that allows people to buy essential goods and pay them off via regular deductions from Centrelink payments.

At the time of the stop order Urban Rampage claimed it was having "disastrous impacts" on its First Nations customers.

ASIC then extended the stop order until March 15, saying that nine of the 10 Urban Rampage's nationwide stores were involved in the alleged misconduct.

ASIC said it was concerned the consumers in CCD's target market are low-income recipients of Centrelink benefits, residing in remote Indigenous communities, without access to other forms of credit.

ASIC said these consumers are vulnerable and at risk of financial hardship, and that many may currently be experiencing financial distress.

Urban Rampage's lawyer, Leon Loganathan from Ward Keller, claimed ASIC had refused to tell his client when it will make its final decision on an interim stop order, despite the company making multiple submissions.

Mr Loganathan said the interim order was in effect a "permanent ban".

He wrote to ASIC this week, claiming Urban Rampage was committed to a "cooperative approach with ASIC to the extent that is possible" but "we fail to understand why ASIC cannot provide any certainty as to when a final decision will be made".

"ASIC's unwillingness to provide our client any certainty as to when a decision may be made, cause our client considerable concern as to whether ASIC is approaching the decision with impartiality," the letter said.

"As you know (or should know), the interim decisions are having a significant and adverse effect on our client and its customers.

"Our client's business is almost entirely reliant on customers being able to pay using the Commonwealth Government's Centrepay scheme. It follows that the interim decisions are devastating to our client's ability to continue operating.

"In the event our client does not receive a satisfactory response by COB (close of business) on Thursday, 4 April 2024, we reserve our client's rights to commence court and/or tribunal proceedings without further notice to you.

Mr Loganathan said ASIC consulted with financial advisors before imposing the stop order, but Urban Rampage had heard from more than 80 upset customers with written complaints.

There was also a petition circulating with more than 700 signatures to bring Centrepay back.

"ASIC hasn't talked to those affected by the Centrepay ban," Mr Loganathan said. "

"This is unfair and appears discriminatory and paternalistic.

"It suggests that First Nations people can't manage their money and make good financial decisions.

"Other non-Indigenous Australians have many ways to buy now and pay later. First Nations people on benefits don't."

However, Alan Gray, managing director of the Broome-based financial counselling agency Bush Money Mob, said Urban Rampage's claims it was the "lifeline retail network for remote Indigenous communities in rural Australia" was incorrect.

"In Broome, where I live, there is an Urban Rampage store but there is also a Best and Less store, a Kmart, and a Red Dot shop, all selling very similar clothing, artificial funeral flowers, and household items like Urban Rampage," he said.

"There are also several op shops in Halls Creek, Derby and Nhulunbuy, where I have also worked… there are other shops selling similar products.

"I have extensive first-hand experience with Urban Rampage, and I remain just as alarmed about their business model and operating methods today, as when I first encountered them many years ago."

Mr Gray said he compared some of the items on sale at Urban Rampage and Kmart and found quite a large discrepancy in prices.

He claims Urban Rampage was selling a "hoodie" for $74 which you could pick up at Kmart for $25.

"So the obvious question is why would anyone pay $74 for a hoodie when they could buy a better quality hoodie in the same town for $25?", Mr Gray said.

"The answer, of course, is that people don't have the $74, but they can get the hoodie today on Centrepay with no cash."

An ASIC spokesperson said the delegate is considering the matter, and the issues raised in the hearing, and will make a decision in due course.