Cash Converters Pty Ltd v Margo Chaille Webber

This matter concerned an appeal from the District Court of Western Australia to the Supreme Court of Western Australia, brought by Cash Converters Pty Ltd against Margo Chaille Webber. The dispute arose from a loan agreement entered into between the parties, where Ms. Webber alleged that Cash Converters had engaged in misleading and deceptive conduct in contravention of the *Fair Trading Act 1987* (WA) and the *Trade Practices Act 1974* (Cth) (now the *Australian Consumer Law*). Specifically, Ms. Webber claimed she was misled about the true cost of the loan and the nature of the security taken over her property.

The Supreme Court was required to determine whether the District Court had erred in finding that Cash Converters had engaged in misleading and deceptive conduct. This involved considering whether the representations made by Cash Converters regarding the loan terms and security were, in fact, misleading or deceptive, and whether Ms. Webber had relied on those representations to her detriment. The court also had to assess the adequacy of the disclosure provided by Cash Converters concerning the loan's true cost and the implications of the security interest.

In its reasoning, the Supreme Court applied established principles of misleading and deceptive conduct under consumer protection legislation. The court considered the objective test of whether a reasonable person in the position of Ms. Webber would have been misled by the representations made. It examined the specific wording of the loan agreement and the surrounding circumstances of its formation, including the information provided to Ms. Webber. The court found that the representations made by Cash Converters were indeed misleading, as they did not adequately convey the full financial obligations and risks associated with the loan, particularly concerning the security. The appeal was dismissed, upholding the District Court's finding of contravention.