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.