generates income through the sale of second-hand goods, unsecured loans and secured pawnbroking loans. Cash Converters’ franchise network represents 618 stores throughout the globe, including 80 in Australia, and income is generated through royalties paid to the Group by the franchisees. Secured vehicle financing is provided through GLA – a wholly owned subsidiary – via a network of Australian finance brokers and car dealers. This business unit contributed 16% of Cash Converters EBITDA in financial year 2021. Class Action lawsuits & Infringements Two class actions have been launched in the Federal Court of Australia on allegations that Cash Converters charged excessive fees on short term loans in NSW between July 2010 and June 2013. Over 50,000 customers have joined to seek about $40 million in compensation. A $23 million in-principle settlement was reached with more than 37,000 Cash Converters customers in June 2015. In 2016, an Australian Securities and Investments Commission (ASIC) investigation found that Cash Converters had failed to make reasonable inquiries into the income and expenses of customers availing their small amount loan product. They were ordered to pay back $10.8 million to consumers and fined a further $1.35 million in addition to entering an Enforceable Undertaking (EU) to uplift its risk, compliance and loan application assessment processes. Cash Converters completed all commitments made to ASIC as part of the EU in February 2018 which included the engagement of Deloitte as an independent expert to review the Company’s updated practices. The investigation was part of a wider focus by ASIC on pay day lending in 2016, with lenders Nimble and Fair Go Finance also refunding customers as a result of investigations. In May 2018, Cash Converters reached a settlement with ASIC relating to debt collections practices between 2013 and March 2016 resulting in a payment of $650,000 to the National Debt Helpline and the outsourcing of debt collection activity to a third-party, Collections House Limited (ASX:CLH) which was completed by 30 June 2018. In 2021, Cash Converters recommenced its own debt collection activity after receiving ASIC approval. Cash Converters made the final class action settlement payment relating to historic lending practices in September 2020. References Companies listed on the Australian Securities Exchange Companies based in Perth, Western Australia Financial services companies established in 1984 Retail companies established in 1984 1984 establishments in Australia Retail companies of Australia Pawn shops