Cash Converters refunds
Are you owed a refund for your payday
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
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
You got your loan online or instore and it was your first
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
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
- 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
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.
Last updated: 05 Dec 2016