Money Mart Class Action – (Smith et al. v. National Money Mart et al.)
This class proceeding concerns alleged illegal interest charged by National Money Mart Co. (“Money Mart”) and its parent company Dollar Financial Group, Inc. (“Dollar Financial”) on “Fast Cash Advances” also known as “Payday Loans”. A “Payday Loan” is a short-term loan due on or before the borrower’s next payday upon which the lender charges various fees and interest. It is alleged that these charges constitute interest exceeding the allowable rate pursuant to section 347 of the Criminal Code.
On June 5, 2009, the parties agreed to a settlement of the class action. On March 3, 2010, by written Reasons, the Honourable Mr. Justice Perell approved the settlement. The class of persons covered by the settlement has expanded from the original Class Definition in the Certification Order, as detailed in the Honourable Mr. Justice Perell’s Reasons. It is now, generally, comprised of persons who entered into a Fast Cash Advance and/or a Payday Loan in Ontario with Money Mart or a franchisee between August 19, 1997 and December 15, 2009, which was repaid by cheque delivered at the time the loan was obtained.
The Honourable Mr. Justice Perell’s Reasons for decision as well as the Settlement Agreement, are accessible through the “Documents” link. They provide an outline of the settlement benefits and eligibility requirements. Notice and administration of the settlement will be made directly by Money Mart through its computer system, and will be overseen by the Court and Class Counsel.
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Latest Developments
- March 3, 2010
The Honourable Mr. Justice Perell approved the settlement and amended the Class Definition. The Reasons of Justice Perell outline in a general manner the Class Members’ entitlements. Notice of the settlement and its distribution will be made to Class Members by Money Mart through its computer system, under the supervision of the Court and the Class Counsel Representative.
- January 21, 2010
The court will decide whether or not to approve the proposed settlement at an approval hearing scheduled for February 22, 2010. Class Members who wish to object to the proposed settlement must do so in accordance with the provisions set out in the Notice. The Notice, and other relevant documents, including the Settlement Agreement, are available in the Documents section of this webpage.
- June 5, 2009
A tentative settlement was reached in this matter. Under the terms of the proposed settlement, the award is comprised of $100 million, including $27.5 million in cash, $30 million in transferable credits to be distributed to Class Members, and approximately $43 million to release all debts owed by Class Members to Money Mart on April 30, 2009. The parties will appear before the Ontario Superior Court of Justice in early 2010 to ask the Court to approve the proposed settlement. Class Members may attend the hearing and may ask to make submissions regarding the proposed settlement. Class Members who wish to object to the proposed settlement will be given an opportunity to do so in accordance with directions to be provided by the court at a later date. Please review the Summary Settlement Agreement, below, for further details. A Detailed Settlement Agreement is being prepared. More information will be posted on this website from time to time as it becomes available.
- June 5, 2009
By Order of The Honourable Madam Justice Spies, the trial of the common issues was adjourned after four weeks of submissions as a term of the proposed settlement.
- April 27, 2009
The trial of the common issues commenced.
- January 5, 2007
By Order of The Honourable Madam Justice Hoy, the action was certified as a class proceeding.
- March 3, 2010
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News Releases and Reports
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Documents
- March 3, 2010 Settlement Approval reasons
- June 5, 2009 Settlement Notice
- June 5, 2009 Settlement Agreement
- June 5, 2009 Trial Adjournment Order and Summary Settlement Agreement
- April 20, 2007 Amendment to Certification Order
- March 5, 2007 Reply to the Statement of Defence of Dollar Financial
- March 5, 2007 Reply to the Statement of Defence of Money Mart
- February 19, 2007 Statement of Defence of Dollar Financial
- February 19, 2007 Statement of Defence of Money Mart Company
- January 5, 2007 Certification Order
- October 10, 2006 Further Fresh Statement of Claim
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FAQS
What is a class action?
A class action is a lawsuit which provides a method for a large group of people with common claims to join together to advance one large claim. Class actions are a more efficient and cost-effective way for groups of people with common claims to gain access to the legal system and seek justice.
What does certification mean?
In order for an action to proceed as a class action, the court must determine whether it is appropriate for the case to be treated as a class action. Some of the factors the courts consider are the extent to which the claims of the class members are common, and whether a class action is preferable to other methods (such as individual actions) of advancing the issues. The decision as to whether a class action should be certified takes place at a certification hearing and is decided by a judge. If certified, a representative plaintiff will advance the action on behalf of all of the class members.
How do I know if I am a Class Member?
The certification order will always contain a description of who is a class member. We post the certification orders in our actions so that you can review them. You do not need to “sign up” to become involved in a class action. If you are included in the class description, you are automatically a class member who will be affected by the outcome of the class action unless you decide to “opt out”.
Are Class Members notified of the certification of the class proceeding?
Yes. After the claim has been certified, the court will authorize notice to be given to the members of the class.
Can I opt out of a class action and pursue independent legal action?
Yes. When a class action is certified, class members are always given an opportunity to opt out of the action. A deadline is imposed for opting out. If you do not opt out by the given deadline, class members will be bound by the outcome of the class action, whether it is successful or unsuccessful. If you opt out, you will not receive any benefit if the action is successful.
Will there be any cost to class members for legal fees?
Typically, class actions are handled on a contingency fee basis, which means that the class action lawyers will be paid only if the class action is successful at trial or settled. In that case, class counsel fees may be paid by the defendants or out of the settlement or judgment proceeds as approved by the court. In addition, the plaintiff may seek funding assistance from the Class Proceeding Fund which, if funding is granted, may provide funding for disbursements.
I still have questions…
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Contacts
416-977-8353
