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.
The two class actions are:
- The 'Cash Advances' case, which concerns loans taken out between 28 April 2010 and 30 June 2013. The case has now settled and is currently in the Settlement Administration phase.
- The 'Personal Loans' case, which concerns loans taken out between 30 July 2009 and 30 June 2013. This case has been to trial and is awaiting judgment.
Settlement of the Cash Converters Queensland “Cash Advances” Class Action
Kim McKenzie v Cash Converters International Limited (NSD 601 of 2016)
Group Members in this class action are people who obtained a Cash Advance loan (whether online or by going into a store) between 28 April 2010 and 30 June 2013 and who paid a fee styled as a ‘broker’s’ fee or a ‘brokerage’ fee.
In early December 2018, Maurice Blackburn sent a Notice of Settlement to all Group Members. This Notice was sent by email or post to the last known contact details provided to Maurice Blackburn and contained important information about the Settlement. The Notice also asked Group Members to update their contact information and bank details to avoid refund payments being unsuccessful.
On 31 January 2019, Maurice Blackburn was appointed by the Federal Court to act as Claims Administrator. The role and responsibilities of Claims Administrators are set out in and governed by the Settlement Scheme.
On 27 March 2019, Maurice Blackburn processed the first round of refund payments to Group Members. It is expected that Group Members' total refunds will be made in two payments, with the second refund payment expected to be made in June 2019.
On 25 June 2019, Maurice Blackburn processed the second and final Refund Payment to Group Members.
The "Cash Advances" class action has now concluded and all settlement money has been distributed.
More information about the class action and Settlement Administration can be accessed by downloading the following documents:
If you need more information or a copy of the Deed of Settlement, please contact our team:
Phone: 1800 550 587
Cash Converters Queensland "Personal Loans" class action
This class action is in relation to Cash Converters' 'personal loan' product obtained by Queensland borrowers between 30 July 2009 and 30 June 2013.
Maurice Blackburn's client, Sean Lynch, alleges that the 'brokerage' fee charged on personal loans in this period caused the respondents to breach consumer protection laws imposing a 48 per cent per annum interest rate cap for loans in Queensland - which meant that the annual percentage rate of interest was in excess of 175 per cent per annum. The applicant also alleges that the respondents engaged in unconscionable conduct.
Hearing before the Federal Court
On 22 October 2018, the Personal Loans Class Action went to a hearing at the Federal Court of Australia in Sydney. The hearing finished on 9 November 2018.
The trial was to determine the claims of Mr Lynch and the issues that are common to the claims of the class members.
Cash Converters denies the applicant's claims and defended the class action at trial.
We suspect that it may be some time before a judgment is handed down. This is common for matters of this scale and complexity.
More information about the class action can be accessed by downloading the following documents:
If you need more information, please contact our team:
Phone: 1800 550 587