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 deadline to update bank account details was 6 March 2020.
If you are a Group Member and you need to update your bank details please contact Maurice Blackburn as soon as possible on 1800 550 587 or you may not receive a refund.
Settlement APPROVAL AND NEXT STEPS
The Settlement Approval Hearing was held on Tuesday 24 March 2020. The Settlement was approved by the Federal Court.
Due to various requirements under the Federal Court Rules and Federal Court of Australia Act 1976 (Cth), refunds cannot be distributed to group members until an appeal period of 49 days has passed. In other words, Maurice Blackburn cannot, under law, distribute the settlement sum within the 49 day period due to the risk that the decision could be appealed in that time.
The first tranche of refund payments will be made to Group Members as soon as possible after the appeal period has passed. This will be around late May 2020.
Refund payments will be made by EFT transfer. Once refund payments have been made by Maurice Blackburn, Group Members will receive written correspondence, informing them of the date and amount of their refund payment.
The second and final refund payment to Group Members will be made in December 2020, once the second payment of the settlement sum has been received from the respondents.
We are aware that many Group Members may be experiencing financial difficulties in connection with the COVID-19 pandemic.
Maurice Blackburn is working hard in this time to ensure that all Group Members receive their refund payments as soon as possible. At this time we do not anticipate any disruption to payments being made in late May 2020.
Notice of proposed settlement
CASH CONVERTERS QUEENSLAND "PERSONAL LOANS" CLASS ACTION
Sean Lynch v Cash Converters Personal Finance Pty Ltd (ACN 110 275 762) and Anor (NSD900/2015)
On 21 October 2019 an in-principle agreement to settle the Cash Converters Personal Loans Class Action was reached.
This means that Cash Converters has agreed to refund money to eligible Personal Loans customers.
The Federal Court approved the settlement at a hearing on 24 March 2020.
Summary of the Approved Settlement
The key terms of the settlement are:
- Cash Converters agreed to pay a total of $42,500,000, including costs.
- The settlement sum will be paid in two tranches: The first tranche of $32,500,000 in late 2019 the second tranche of $10,000,000 before 30 September 2020.
- Refunds to group members will also be paid in two tranches. The first tranche of refunds will be paid in around May 2020.
- The costs of running the class action and administering the settlement must be approved by the Court as reasonable before they are paid.
- In agreeing to settle the Class Action, Cash Converters have not admitted any liability.
- Group members will be deemed to have released Cash Converters from the time that the settlement becomes final and will not be able to bring any further claim in relation to these matters.
If you need more information, please contact our team:
Phone: 1800 550 587