Mandurah Cash Converters fire leaves loan clients in limbo

It wasn’t the fist time Mr Hawke had used Cash Converters loan service, where customers leave valuable items such as jewellery as collateral.

 After repaying their loan, the client can reclaim their goods.

As Cash Converters Australia puts it in their website “it’s like selling your goods, but you retain the option to get your product back after you’ve paid off your loan”.

However, Mr Hawke is afraid he won’t get his Xbox back this time.

The suspicious fire that gutted the recently refurbished Mandurah's Cash Converters shop and destroyed almost $2 million worth of stock has left customers and loan holders like Mr Hawke in limbo.

Mandurah Cash Converters owner Jack Ferrari said the insurance process was being taken care of by Cash Converters Australia, and it was unclear yet what the outcome would be for any affected customers.

However, Mr Ferrari said when customers leave collateral it is usually at their own risk and insurance may not cover them for damage by fire.

Mr Hawke said he feels terribly frustrated and said the company should make it clear to customers that goods kept as collateral are not insured.

“It’s more than a bummer, I don’t have the money to buy a new one either,” Mr Hawke said.

“They should really make this clear when you hock in items, so you are aware of it instead of just putting it on the back of your pawn ticket.

“They never told me once at all in all in my dealings with them in person.”

Cash Converters head office said they couldn’t provide any details about the situation of the insurance until the police investigation is over.

However, they said customers were their priority and the company was currently working on getting in touch with all the affected Mandurah customers.

Police arson squad detectives are currently investigating.

Anyone with information about the fires is asked to call Crime Stoppers on 1800 333 000 or make a report online at crimestopperwa.com.au.