Cash Converters International Limited
(ASX:CCV) will fight a $40 million legal battle launched by customers claiming they were charged illegal levels of interest on personal loans.
Two class actions were set to be filed in the Federal Court yesterday on behalf of about 50,000 Cash Converters customers in NSW.
But the company says the numbers seem vastly inflated, as it has just 18 stores in NSW and has only been lending money in the state for three years.
It also says it is confident its fees have been applied lawfully.
Law firm Maurice Blackburn alleges the company exploited thousands of financially struggling customers by imposing charges above the 48 per cent interest rate cap that exists in NSW.
Cash Converters posted a 12 per cent lift in net profit to $32.9 million for fiscal 2013.
