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.