The Federal Court has authorized a $42.5 million settlement for a course action against Cash Converters.
The Federal Court authorized a $42.5 million settlement in March for a course action against Cash Converters concerning the charging of exorbitant costs on unsecured loans. Money Converters had been accused of acting unconscionably for breaching the maximum interest limit beneath the credit rating legislation.
This settlement follows a $16.4 million settlement authorized by the Federal Court in 2018 in a split course action regarding interest charged on tiny quantity credit agreements.
Initial action
It absolutely was alleged that for one-month loans between April 2010 and June 2013, Cash Converters charged a lot more than 400% interest despite there being truly a legal limit at 48%.
Lead plaintiff impairment pensioner Kim McKenzie brought a claim against Cash Converters in 2016 with respect to 30,000 Queensland borrowers. 1 Ms McKenzie ended up being charged $700 in brokerage charges across 15 loans that have been supposed to be solutions that are short-term. Consequently, the interest that is high in the loans had been leading customers into further financial obligation. Continue reading “Cashed up consumers from Money Converters settlement”