Consumer Action Law Centre (Consumer Action) acts on behalf of the lead plaintiff, a Victorian woman, who has filed a class action in the Federal Court of Australia against Taylors Business Pty Ltd (ACN 107 445 723) (Taylors Business).
Taylors Business operates a pawnbroking business in Delahey, Victoria.
How to register for updates
You can register for updates on the class action by clicking the button below.
Background
On or about July 2023, Taylors Business shut its pawnbroking shop without notice. After several complaints from Taylors Business’s customers, Consumer Action investigated, and it revealed that Taylors Business was deregistered as a pawnbroker by the Business Licensing Authority (BLA) on 15 November 2022. Taylors Business continued to enter into new pawnbroking contracts with its customers after this date.
Taylors Business became re-registered to operate as a pawnbroker by the BLA on 8 November 2023 and has since re-opened its store.
Legal claims and orders sought
The class action alleges that from 15 November 2022 to 26 October 2023, Taylors Business:
- Was not registered with the Business Licensing Authority (BLA) to carry on business as a pawnbroker;
- Was not subject to the pawnbroker exemption to the operation of National Consumer Credit Protection Act and the National Credit Code, found in section 6(9) of the National Credit Code;
- Engaged in unlicensed credit activity because it undertook credit activities without holding a valid Australian Credit Licence;
- Charged prohibited interest at an equivalent rate of 480% per annum, being 432% higher than the highest permitted rate of 48% specified in the National Credit Code and the Consumer Credit (Victoria) Act 1995;
- Entered into pawnbroking contracts that contained an unfair contract term in the nature of the interest charged.
- Engaged in unconscionable conduct and entered into unjust transactions.
The Applicant is seeking, amongst other things, orders that Taylors Business return any pawned goods, pays compensation and penalties to affected customers and orders that affected customers are not liable to pay further charges.
Injunction
The Federal Court granted an injunction against Taylors Business on 9 November 2023.
The injunction applies until further order or determination of the proceedings, and:
- restrains Taylors Business from dealing with any of the pawned goods that are subject to the class action; and
- includes an exception that Taylors Business can return the pawned goods at its own expense, without requiring the payment of any charges under the Pawn Contracts.
Mediation
We attended a mediation on 12 November 2024 and mediation in this matter is ongoing.
The matter is due back in court on 2 December 2024.
We will provide class members with an update as soon as possible after this date.
Media releases
