Cash Converters settles class action

PAYDAY lender Cash Converters has settled a multi-million dollar class action brought by customers who claimed they were charged excessive interest.

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

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”.