Law firm Maurice Blackburn has filed a class action in the Federal Court against Cash Converters in Queensland to obtain refunds for all brokerage fees paid by an estimated 23,000 borrowers between 2009 and 2013.

It follows a $23 million settlement in 2015 in NSW over similar allegations.

The law firm said the company had been loading short-term loans with brokerage fees.

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Maurice Blackburn special counsel Miranda Nagy said the fees to access cash advance loans pushed the “effective” interest rate to 420 per cent a year, exceeding the legal limit.

Ms Nagy said in Queensland the law caps lending rates at 48 per cent for credit cards.

“The reality is that excessive fees and interest can force borrowers to borrow again and again, and their debt can easily spiral out of control,” she said.

Gold Coast resident, carer and disability pensioner Kim McKenzie will lead the class action on behalf of other affected borrowers.

“Loans like this should be designed as a short-term solution to help get you out of trouble, not set up in such a way that they almost ensure you’re stuck in more trouble for longer,” she said.

Cash Converters company secretary Ralph Groom released a statement to the ASX saying the “action would be vigorously defended”.

“These proceedings attack the brokerage fee system used for customers between 28 April 2010 and 30 June 2013,” he said.

“The brokerage fee system has not been used since 30 June 2013.”