Response to CALC Press Release
Sydney, Sep 24, 2015 AEST (ABN Newswire) - Cash Converters International Ltd (
ASX:CCV) (CKKIF:OTCMKTS) notes the Press Release issued on 24th September 2015 by Consumer Action Law Centre (CALC) concerning an action by a single borrower against Cash Converters. This CALC statement is highly misleading in its claim that the case evidences a failure of the new Federal consumer credit legislation. Only 7 out of the 31 loans from Group companies were made to this borrower since that legislation fully commenced on 1 July, 2013, a period of just 27 months.
The total fees the subject of the claim amount to $4,927. The fees actually paid on loans made under the new legislation since 1 July, 2013 total $288.20.
Accordingly, a total fee refund on those loans would be $288.20, hardly the basis for a Federal Court action or an assertion by CALC that: "Payday lending reforms from 2013 have failed vulnerable Australians".
It is surprising that CALC has launched this action without exhausting the consumer protections provided under the Consumer Credit Protection Act for hardship and for external dispute resolution by the independent credit ombudsman. Of course those deliberations are held in private. It is well known that CALC is constantly lobbying against the micro-lending industry and these exaggerated claims about the failure of this Act form part of CALC's ongoing attempts to discredit the industry.
About Cash Converters International Ltd
Cash Converters International (ASX:CCV) is a franchised retail network listed on the ASX. It specialises in the sale of second-hand goods. The Cash Converters group employs modern retailing practices, professional management techniques and high ethical standards to the management of its stores throughout the chain which appeal to a wide cross section of the community. As a result, Cash Converters has been able to position its outlets as credible retail merchandise stores, resulting in a profitable market for the group.
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