Cash Converters (ASX:CCV) will pay $42.5 million to settle a class action claim.
The settlement will be paid out to borrowers in Queensland who took out consumer credit loans from Cash Converters subsidiaries between 30 July 2009 and 30 June 2013.
The payment is to be made in two tranches. The first tranche of $32.5 million is to be paid within 21 days of execution of the deed of settlement. The second tranche of $10 million is to be paid on or before 30 September 2020.
Cash Converters intends to meet this payment from available cash.
Shares in Cash Converters (ASX:CCV) are trading 40 per cent higher at 21 cents.