Sydney woman wants ‘justice’ after consumers allegedly paid Cash Converters 633 per cent interest

A SYDNEY woman leading a $40 million class action covering 50,000 NSW consumers who paid Cash Converters allegedly excessive loan interest of up to 633 per cent says she wants “justice”.

Young couple standing in front of closed Cash Converters store on Gouger Street, Adelaide.

THE western Sydney woman leading a $40 million class action covering 50,000 NSW consumers who paid allegedly excessive interest on loans says she wants “justice”.

The Federal Court action brought by Cambridge Park grandmother Julie Gray claims Cash Converters charged her and others a rate of 633 per cent on cash advances and 145 per cent on personal loans despite a legal limit of 48 per cent.

Ms Gray said she had not been aware of the effective interest rates she was paying until they were explained to her by Legal Aid and a financial counsellor.

“I was shocked,” Ms Gray told The Daily Telegraph yesterday. She no longer uses payday lenders.

“I’ve paid them (the Cash Converters loans) off. I don’t ever want to go back to that.

The class action automatically covers anyone who took a personal loan or cash advance from Cash Converters in NSW between July 2010 and June 2013.

It is not known how much Cash Converters lent in this state over that time. But overall, the sharemarket-listed company extended loans of more than $1 billion over those three financial years.

In its annual report, Cash Converters says of the action: “The current status is that the matter is being defended and is in the early procedural stages. The company is satisfied that these loans were made in a lawful manner.”

Ms Gray said: “I’m hoping to get some sort of justice.”

The action is being run by the law firm Maurice Blackburn.

A directions hearing is set for June 2 in Sydney.

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