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.

UPDDATE: 21 October 2019 - 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, have settled.

The two class actions are: 

  1. The 'Cash Advances' which concerns Cash Advance loans taken out between 28 April 2010 and 30 June 2013. The case settled in 2018.  All refund payments have now been made to class members and no further distributions will be made.
  2. The 'Personal Loans' case, which concerns Personal Loans taken out in Queensland (or online by Queensland residents) between 30 July 2009 and 30 June 2013, on which a “brokerage fee” was paid. This case went to trial in late 2018 and has now settled, subject to  the Court’s approval of the settlement.  If approved, refunds of part of the brokerage fee will be paid in 2020.

At this stage there is nothing you need to do in order to claim a refund in the Personal Loans settlement.

A ‘Settlement Notice’ will be distributed in due course that will provide information about what needs to be done in order to claim a refund.  Further information on the Personal Loans settlement and on how refunds will be paid to class members will be provided on this website shortly, after the Court has approved the settlement notice.

Date: 21 October 2019

If you need more information, please contact our team: 

Email: ccqld@mauriceblackburn.com.au 

Phone: 1800 550 587 

FAQs - your questions answered

In 2015 Mr Sean Lynch, represented by Maurice Blackburn Lawyers, commenced a class action against Cash Converters on behalf of approximately 68,375 people 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.

Mr Lynch argued that customers paid too much for these Personal Loans and that Cash Converters acted unfairly. He alleged that Cash Converters charged ‘brokerage’ fees on these loans which required customers to pay more than 175% per annum in interest, in breach of consumer protection laws which say that interest rates are not allowed to be more than 48% per annum.

Mr Lynch claimed refund money for himself and all Group Members in the Class Action. 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.

Eligible ‘group members’ (or ‘class members) are people who took out a “Personal Loan” (typically between $600 and $2000 paid off in about 6 months) from a Cash Converters store in Queensland (or online if they were a Queensland resident) between 1 July 2009 to 30 June 2013 and paid a fee styled as a ‘broker’s’ fee or ‘brokerage’ fee.

We do not currently have access to your loan information to be able to determine whether you are eligible for the class action and, if so, how much compensation you may be entitled to. There will likely be a formal process for assessing group members’ eligibility later down the track. We expect that Cash Converters will be required to provide group members’ loan information in order to assist this process. We cannot say at this stage when this process will take place.

Please note that pawnbroking loans and other Cash Converters products, including Cash Advances, are not included in this class action settlement.

At this stage there is nothing you need to do in order to claim a refund. A ‘Settlement Notice’ will be distributed to eligible Group Members in due course that will provide information about what needs to be done in order to claim a refund.

We cannot say at this stage. It depends if and when the proposed settlement is approved by the Court. We do not yet have a date for the settlement approval hearing. Further information will be provided to Group Members in a court-approved ‘Settlement Notice’ which will be distributed in due course.