Cash Converters has agreed to pay $42.5 million to settle a class action, in which it has been accused of charging vulnerable consumers excessive fees on personal loans.

In a statement, the pawnbroker and loan provider said it signed a settlement deed with the lead plaintiff, disability pensioner Sean Lynch, on Monday morning.

As a condition of the deal, Cash Converters did not admit liability.

It was alleged Cash Converters engaged in "unconscionable conduct" by charging annual interest rates in excess of 175 per cent from July 30, 2009 to June 30, 2013, sending tens of thousands of borrowers into "debt spirals".

The plaintiffs in the case took out personal loans ranging from $600 to $2,000 for periods of six months.

The class action was brought by law firm Maurice Blackburn on behalf of more than 60,000 Queenslanders.

It was argued Cash Converters breached Queensland consumer laws, which impose a cap of 48 per cent annually for consumer credit loans.

In order for the settlement to be finalised, it will need to be approved by the Federal Court.

The company said it would pay the settlement amount in two stages.

It agreed to pay $32.5 million from its existing cash reserves within 21 days, and the remaining $10 million by September 30, 2020.

By 12:15pm (AEDT), Cash Converters' share price had jumped 26.7 per cent to 19 cents.

It had surged by as much as 43 per cent earlier in the day.

However, the company has seen better days on the ASX — given its share price has tumbled significantly since April 2013, when it hit a record high of $1.51.