an equal and opposite reaction
Case Details for "National Money Mart Company and Dollar Financial Group Inc"
National Money Mart Company and Dollar Financial Group Inc. Settle class action
National Money Mart Company and Dollar Financial Group Inc. reached a settlement whereby the defendants will pay CDN$27.5 million in cash, a minimum of $43 million in debt forgiveness incurred on or before April 30, 2009 and $30 million in fully transferrable transaction credits to the class members. The transaction credits expire four years from the date of settlement approval. At the end of the four year term, all unused credits will be applied for the benefit of Money Mart's customers who secure a payday loan from Money Mart from that date forward in the form of a reduction of Money Mart's usual and ordinary rate.
The class action, which was started in 2003, alleges that Money Mart and its parent company, Dollar Financial breached section 347 of the Criminal Code of Canada by charging and collecting fees and interest at an effective annual interest rate in excess of 60% on "Fast Cash Advance" loans, also known as "Payday Loans".
The class action asserts that all of the interest and fees charged and collected by Money Mart and its franchisees on "Fast Cash Advance" loans repaid by cheque on the borrower's next payday are, as a matter of law, "interest" notwithstanding that Money Mart called them "fees". If the charges are all interest, then the effective annual interest rate on these loans substantially exceeded 60%.
Posted on:2009-06-10 www.moneymartclassaction.com
Company: National Money Mart Company and Dollar Financial Group Inc
Class:
Scope: International
Type of Case: Consumer
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