Pensioner sues Cash Converters

CALC questions compliance with responsible lending provisions

A Victorian Disability Support Pensioner has issued proceedings in the Magistrates’ Court against two Cash Converters lenders.[1]

Consumer Action’s client alleges that over approximately a three year period he was provided with 55 short-term ‘cash advance’ credit contracts by Victoria Point Pty Ltd (which trades as Cash Converters Morwell) under which he paid $3,762.50 in fees and charges. Consumer Action’s client also alleges that he entered into four ‘personal loan’ contracts with Cash Converters Personal Finance Pty Ltd (previously known as Safrock Finance Group Pty Ltd) under which he paid $1,512.73 in fees and interest.

The Court has been asked to consider whether:

  • the Cash Converter entities complied with the responsible lending provisions of the National Consumer Credit Protection Act 2009 (Cth) with respect to certain loans;
  • certain contracts should be reopened on the basis that they were unjust under the National Credit Code;
  • certain contracts have met the disclosure obligations under the National Credit Code;
  • the Cash Converter entities engaged in unconscionable conduct with respect to certain loans.

Anyone who finds they’re regularly taking out this type of loan should seek legal advice. They can also call a free, independent and confidential financial counsellor on 1800 007 007.

[1] Victoria Point Pty Ltd and Cash Converters Personal Finance Pty Ltd