Cash Converters to pay $42.5 million in class action settlement
Second-hand goods retailer Cash Converters will pay out $42.5 million in compensation to 48,000 customers over allegations it breached Queensland credit laws.
The settlement comes almost a year after the Federal court trial concluded, according to Maurice Blackburn Lawyers, where Cash Converters faced allegations it had charged borrows interest rates of more than 175 per cent per annum – compared to the 48 per cent per annum ceiling put in place by Queensland consumer law.
Cash converters will pay the $42.5 million into a fund to be distributed among the recipients in two tranches – one of $32.5 million to be paid within 21 days of the settlement, and one of $10 million which will be paid on or before 30 September 2020.
The settlement was signed without any admission of liability by Cash Converters, and means the business has paid almost $59 million to Queensland claimants after also paying $16.5 million in relation to cash advance loans.
“These class actions are prime examples of how the class action regime works to promote access to justice for the most disadvantaged in our community,” said Maurice Blackburn principal lawyer Miranda Nagy.
“This is a large group of people, who borrowed very small amounts of money, for very short periods, at high interest rates. None of them could hope to have run this case to see justice served, without an effective class action regime.”
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