Cash Converters International Limited (Cash Converters) has announced that it has settled a class action against it without an admission of liability, subject to court approval.
Up to 40,000 Cash Converters customers in NSW during the period 1 July 2010 to 30 June 2013 claimed about $40 million compensation.
Cash Converters will pay $20 million into a fund for distribution to claimants as well as $3 million in legal costs.
The plaintiff (Ms Gray) issued two proceedings claiming administration fees and deferred establishment fees (which would be payable if Ms Gray paid out the loan before the full term of 24 months) were void (because they caused the annual interest rate to exceed the permitted maximum annual percentage rate of 48%) or unconscionable.
The proceedings related to personal loans and cash advances.
