Cash Converters replaces chairman, CEO

The payday lender posted a $22 million annual loss and has been fighting lawsuits from borrowers alleging execessive charges

Australia's largest payday lender Cash Converters is replacing its top management and has pledged to conduct a strategic review of its business.

The lender and second hand dealer said chairman Reginald Webb will retire at the end of the 2106 financial year, to be replaced by former Bank of Queensland chief executive Stuart Grimshaw, who already sits on the company's board.

It has also appointed Mark Reid as the chief executive for its Australian operations, to replace veteran Ian Day.

Mr Reid was previously chief executive at Greenstone Financial Services.

Last month, Cash Converters swung to a $21.7 million annual loss from a profit of $24.2 million in the prior year, after completing a $23 million law suit settlement and a massive UK restructure.

In June, the lender settled a class action taken by NSW borrowers who claimed they were slugged excessive interest.

It also faces a fresh class action in Queensland after allegations it has exceeded the legal limit for interest rates and charges.

"The company recognises that in a rapidly changing market it needs to review the way it manages itself and how it continues to evolve," it said in a statement.

Mr Webb, who has been appointed as interim non-executive chairman, will immediately undertake a review of the company's board structure and composition.

Cash Converters has also appointed consulting group CACE Partners to conduct a full review of the business across geographies, distribution channels and product lines.

CACE Partners will also help formulate a three-year strategic growth plan for the company.


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Source: AAP


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