Cash Converters Queensland class actions

Two class actions by Maurice Blackburn commenced in the Federal Court of Australia seeking compensation for Queensland borrowers who took out payday loans from Cash Converters stores or online.

Notice of proposed settlement


Sean Lynch v Cash Converters Personal Finance Pty Ltd (ACN 110 275 762) and Anor (NSD900/2015)

On 21 October 2019 an in-principle agreement to settle the Cash Converters Personal Loans Class Action was reached.

This means that Cash Converters has agreed to refund money to eligible Personal Loans customers.

The Federal Court must approve the settlement before it becomes final and refunds can be paid. The settlement approval will be heard by the Court at 10.15am on 24 March 2020.

Summary of the Proposed Settlement

The key terms are:

  • Cash Converters agreed to pay a total of $42,500,000, including costs.
  • The settlement sum will be paid in two tranches: The first tranche of $32,500,000 in late 2019 the second tranche of $10,000,000 before 30 September 2020.
  • Refunds to group members will also be paid in two tranches. The first tranche of refunds will be paid in around May 2020.
  • The costs of running the class action and administering the settlement must be approved by the Court as reasonable before they are paid.
  • In agreeing to settle the Class Action, Cash Converters have not admitted any liability.
  • Group members will be deemed to have released Cash Converters from the time that the settlement becomes final and will not be able to bring any further claim in relation to these matters.

If you need more information, please contact our team: 


Phone: 1800 550 587 

Further Information

A Group Member is someone who took out a “Personal Loan” (typically between $600 and $2,000 paid off in about 6 months) from a Cash Converters store in Queensland (or online if they were a Queensland resident) between 30 July 2009 to 30 June 2013 and paid a fee styled as a ‘broker’s’ fee or ‘brokerage’ fee.

Pawn broking loans and other Cash Converters products, including Cash Advances, are not included in this class action settlement. Information about the Cash Advances Class Action, which has now concluded, can be found here.

Group Members will be sent a Notice of Proposed Settlement (Notice) during the period from 20 January 2020 to 31 January 2020. A copy of the Notice can be found here

The Notice will be sent to the last known contact details Cash Converters held for each Group Member. The Notice will also contain the bank account details which the refund will be paid into.

If you did not receive a Notice but believe you are a Group Member please contact Maurice Blackburn at the contact details listed below.

Maurice Blackburn will rely on the Group Member contact and bank details provided by Cash Converters to process refunds.

If you received a Notice and the bank details listed are incorrect, they must be updated by no later than 6 March 2020. You can update your details via using the unique ID Code that was provided to you in the Notice.

If you received a Notice and the bank details listed are correct, you do not need to do anything.

If you are having difficulty updating your details, please call Maurice Blackburn on 1800 550 587 by no later than 6 March 2020.

If the Court approves the settlement, it is likely that the first tranche refunds will be paid in late May 2020. The second tranche payment will be paid in around December 2020.

The exact amount of the refund cannot be determined now.

Refunds will be calculated on the basis of the ‘brokerage’ fee paid by each Group Member. The Court must approve the proposed method of calculation as fair.

Group Members’ legal rights will be affected by the proposed settlement. Group Members will be deemed to have provided a release to Cash Converters if the Federal Court approves the settlement and either:

(a) No appeal is commenced within 49 days; or
(b) An appeal is commenced but the result of that appeal is that the settlement is approved.

At 10.15am on 24 March 2020, at the Federal Court of Australia, Queens Square, Sydney NSW 2000, the Federal Court will hold a hearing to decide if the settlement is fair and reasonable and in the interests of the Group Members. It is not necessary for Group Members to attend this hearing in order to receive a refund, but Group Members may attend if they want to.

You have a right to object to the settlement being approved. You should tell Maurice Blackburn if you object and the reasons why by 13 March 2020.

If you object to the settlement being approved, you or your lawyer can go to the hearing where the Federal Court judge will decide whether to approve the settlement and explain why you object. The hearing will be on 24 March 2020 at 10.15am at the Federal Court of Australia, Queens Square, Sydney NSW 2000.

This Class Action was started in 2015 in the Federal Court of Australia by Mr Sean Lynch, represented by Maurice Blackburn Lawyers.

Mr Lynch said customers paid too much for their Personal Loan products with Cash Converters in Queensland. He said this was because Cash Converters charged a ‘brokerage’ fee on Personal Loans which meant that customers were paying more than 175% per annum in interest. Mr Lynch alleged that this was in breach of consumer protection laws which provides that interest rates are not allowed to be more than 48% per annum. Mr Lynch also argued that Cash Converters acted unconscionably by charging the ‘brokerage’ fees and interest upon those fees.

Mr Lynch claimed refund money for himself and everyone who obtained a Cash Converters Personal Loan in a Queensland store (or online, and the borrower lived in Queensland) between 30 July 2009 and 30 June 2013, and paid a brokerage fee.

The allegations are denied by Cash Converters.

From 22 October 2018 to 9 November 2018 the Class Action went to a hearing at the Federal Court of Australia in Sydney. Before the judge handed down her decision, the parties agreed to settle the matter out of Court. In agreeing to settle the claims, Cash Converters did not admit liability. The effect of the settlement will ultimately be that the proceedings will be dismissed following payments to group members.

Documents relevant to the case and settlement can be found here. 

If there is anything you do not understand or if you have any questions, do not contact the Federal Court or Cash Converters. You may seek independent legal advice or contact Maurice Blackburn.

Our contact details are:

Maurice Blackburn Lawyers
Level 21, 380 La Trobe Street Melbourne VIC 3000
Phone: 1800 550 587

Supporting information