Cash Converters refunds

Are you owed a refund for your payday loan?

ASIC recently took action against Cash Converters for failing to make reasonable inquiries into people's income and expenses before signing them up for payday loans between 1 July 2013 and 1 June 2016. As a result of this action, Cash Converters is refunding $10.8 million to consumers who took out loans in this period that were unsuitable for them.

Here we explain whether you may be entitled to a refund, and how you can claim it.

Am I entitled to a refund from Cash Converters?

If you received a Cash Converters loan between 1 July 2013 and 1 June 2016, you may be entitled to a refund if any of the following situations apply to you:

You got your loan online and already had two or more payday loans

If this is your situation, Cash Converters has already agreed to refund some of the fees they charged you. They will contact you about this, but don't expect the money until early in 2017 as they have until June 2017 to refund you. Your refund will only cover some the fees you paid.

However, if you couldn't afford the loan, you can lodge a complaint with the Credit and Investments Ombudsman to claim all the fees Cash Converters charged you. You can do this now - you don't need to wait until you get your refund.

You got your loan online or instore and it was your first payday loan

If your first payday loan was from a Cash Converters store or their website, and you think they shouldn't have given it to you because you couldn't afford it, you can lodge a complaint with the Credit and Investments Ombudsman seeking a refund of the fees and charges you paid.

You got your loan instore and already had two or more payday loans

If you already had two or more loans before you got your loan through a Cash Converters store, they shouldn't have given you a loan unless they can prove you could afford it. If you think you could not afford the loan, you can lodge a complaint with the Credit and Investments Ombudsman to apply for a refund of all your fees and charges.

How do I know my payday loan was unsuitable and unaffordable?

Here are some signs that you may not have been able to afford your loan with Cash Converters and you might be due a refund:

  • your expenses consistently exceeded your income
  • there were numerous reversals of payments and dishonour fees on your bank statement
  • your bank account was regularly overdrawn
  • you relied on payday loans to manage big negative bank balances
  • most or all of your income was going on loan repayments on or around the day you were paid
  • you withdrew all or most of your income on or around the day you were paid.

If any of these match the situation you were in when you took out your payday loan with Cash Converters, you should lodge a complaint with the Credit and Investments Ombudsman.

Help lodging your complaint about a payday loan

If you need help lodging your complaint, you can talk to a free and independent financial counsellor by calling 1800 007 007 during business hours, or find one near you by using our online financial counsellors map.

What will your payday loan cost you?

Use our payday loan calculator to see what this type of loan will really cost you.

Payday loan calculator

Our payday loans page also explains who can get a payday loan, how these loans work and your other lending options.

By law, credit providers must lend money responsibly. If your loan from Cash Converters was unsuitable for you, you may be entitled to a refund of your fees and charges.


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Last updated: 05 Dec 2016