Timely support for vulnerable as Cash Converters settlement is approved
This is the settlement approval decision of the class action against Cash Converters in relation to loans to people in Queensland.
This is the settlement approval decision of the class action against Cash Converters in relation to loans to people in the Australian state of Queensland, alleging that brokerage fees charged by Cash Converters were unconscionable in breach of the Australian Securities and Investments Commission Act 2001 (Cth) and in breach of the maximum interest cap permitted under Queensland consumer credit legislation.
The proceeding had gone to trial in November 2018, with an in-principle settlement agreement reached between the parties in October 2019.
The evidence disclosed that there were 68,380 eligible class members, who together had taken out 161,200 loans, having been charged approximately $67.4 million in brokerage fees. It was estimated that, assuming that 65-70% of class members participated in the settlement, they would recover approximately 64-69% of the brokerage fees charged.
Justice Robertson’s judgment approving the settlement is succinct, with his Honour approving the applicant’s legal costs (in the amount of approximately $11.8 million), anticipated settlement administration costs (in the amount of approximately $650,000) and the applicant’s reimbursement payment (in the amount of $15,000). His Honour also appointed Maurice Blackburn as scheme administrator, commenting on the firm’s experience in administering settlements in other class actions.
Read more about the Cash Converters class action.
Lynch v Cash Converters Personal Finance Pty Ltd (No 5)  FCA 389
- Federal Court of Australia, Robertson J, 24 March 2020
- Applicant’s Solicitors: Maurice Blackburn
- Respondent’s Solicitors: Herbert Smith Freehills
- Applicant’s Funder: N/A
Read more about this case on Austlii: Lynch v Cash Converters Personal Finance Pty Ltd (No 5)  FCA 389
Andrew WatsonNational Head of Class Actions, Class actions, Melbourne
"I'm an experienced litigator in class actions, particularly for shareholders who have been victims of corporate misconduct."
Ben SladeState Managing Principal, Office Leader, Class actions, Sydney
"I am driven to give a voice to those who would otherwise have to suffer because those who have done them wrong are all too powerful."
Kimi NishimuraPrincipal Lawyer, Class actions, Melbourne
"I'm committed to fighting for the rights of victims of corporate misconduct as well as pursuing compensation on behalf of my clients."
Rebecca GilsenanExecutive Director, Principal Lawyer, Class actions, Sydney
"I have extensive experience in running complex and novel litigation, including class actions in the areas of price fixing, failed investment schemes, product liability and securities."
Miranda NagyPrincipal Lawyer, Class actions, Sydney
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Julian SchimmelPrincipal Lawyer, Class actions, Sydney
"Class actions are a unique legal mechanism that have helped hundreds of thousands of people receive compensation after mistreatment at the hands of powerful companies, and it’s gratifying to help people get access to justice when otherwise it would’ve been difficult for them."
Vavaa MawuliPrincipal, Class actions, Brisbane
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