A multimillion dollar in-principle settlement has been reached in a class action launched by Cash Converters customers who claimed they were charged excessive levels of interest on personal loans.

Maurice Blackburn Lawyers said on Thursday the $23 million in-principle settlement had been reached on behalf of around 37,500 NSW Cash Converters customers.

“We expect that Cash Converters’ borrowers in NSW will receive a full refund of the overpayment, plus interest,” Maurice Blackburn principal, Ben Slade, said in a statement.

The class action law firm said the settlement was still subject to Federal Court approval, but that it signalled a significant victory for “thousands of people … who shouldn’t have been taken advantage of”.

AAP