Cash Converters Queensland class action

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: 

  1. 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.
  2. 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.

Further information

More information about the class action and Settlement Administration can be accessed by downloading the following documents:

Contact us 

If you need more information or a copy of the Deed of Settlement, please contact our team: 

Email: ccqld@mauriceblackburn.com.au 

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. 

Further information 

More information about the class action can be accessed by downloading the following documents:

Contact us 

If you need more information, please contact our team: 

Email: ccqld@mauriceblackburn.com.au 

Phone: 1800 550 587 

FAQs - your questions answered

All group members in the class action who received a refund have been paid a Total Refund of 67% of the Total Brokerage Fee(s) they were charged by Cash Converters.

All group members have been sent written communication by email or text message confirming the Total Brokerage Fee(s) they were charged and the exact amount of their Refund Payment. If you have not received this communication please contact us.

The Total Refund relates to the Brokerage Fee(s) group members were charged by Cash Converters as part of the cash advance transaction entered into with Cash Converters.

The Total Refund was calculated by dividing the total settlement sum by the Total Brokerage Fee(s) paid by each group member (a pro rata calculation).

The higher the value of the Brokerage Fee(s) a group member was charged, the higher the refund they received.

Each group member has received an equal percentage share of the settlement sum, being 67%. .

The bulk of the Total Refund Payment was made in the First Refund Payment which was processed in March 2019.

The Second Refund Payment is a smaller amount because it is the distribution of a portion of the settlement sum that was unable to be successfully made to certain group members in the First Refund Payment.

The reason Maurice Blackburn was unable to successfully pay some group members in the First Refund Payment was due to the bank and contact details held by Cash Converters no longer being correct for those group members.

It was only after attempts were made to contact those group members who had an unsuccessful payment that the refund amounts initially allocated to them were redistributed to the rest of the eligible group members.

The Second Refund Payment was made into the same bank account that the First Refund Payment was successfully made.

If you have changed your bank details between the First Refund Payment and the Second Refund Payment, you should contact Maurice Blackburn. We may be able to reprocess the second refund payment to you but cannot guarantee this.

If you received a First Refund Payment but not the Second Refund Payment and you have not changed your bank details recently you should contact your bank at first instance.

The class action has now concluded and all settlement money has been successfully distributed to eligible group members.

There is nothing further you are required to do.

If your refund was received into a non-preferred account you will need to contact your bank and request a transfer of the funds to your preferred account. Maurice Blackburn is not able to do this on your behalf.

Participation in the class action should not affect any of your current or future loans with Cash Converters.

All Group Member information was provided to Maurice Blackburn by Cash Converters. This information will only be used for the purpose of paying the refund or contacting a Group Member to obtain updated details. 

The interest earned on the settlement money will be used to cover administration costs.

The Personal Loans Class Action went to a hearing at the Federal Court of Australia in Sydney in November 2018. The Court has not yet handed down a decision in this case. It is common in matters of this size and complexity for judgements to take some time.

We will update this page when we have any further updates.