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Maurice Blackburn has commenced a class action in Queensland against Cash Converters for allegedly charging in excess of 400% interest on on short term loans by "front loading" them with upfront brokerage fees.
It is estimated that 23,000 borrowers over a 4 year period between 2009 and 2013 are affected.
This follows ASIC's crackdown on the pay-day lending industry (which is also focusing on responsible lending obligations of credit providers).