Money Mart class action

2. The trial of the common issues commenced on April 27, 2009.

3. On June 5, 2009, the parties agreed to a settlement of the class action, subject to court approval, on the terms set out in the Summary Settlement Agreement.

4. As a term of the settlement, the trial of the common issues was adjourned after about four weeks of trial.

5. The proposed settlement is for approximately $100 million, allocated as follows:

(a) $27.5 million in cash;.

(b) the release of all debts owed by Class Members to Money Mart on April 30, 2009 that are still outstanding on the date the settlement is approved. These debts are currently estimated to be $53 million; .

(c) $30 million in transferable transaction credits, to be allocated on a pro rata basis, to each Class Member who is not indebted to Money Mart on the date the settlement is approved. These credits will be utilizable for certain Money Mart products in all corporate and franchise stores in Canada, except stores located in the Province of Quebec; and

(d) payment of the levy of the Class Proceedings Fund estimated at approximately $3,000,000.

6. The current class definition is:

All persons who, in the period August 19, 1997 to September 9, 2007, entered into a Fast Cash Advance and/or a Payday Loan transaction in Ontario, with Money Mart or a franchisee of Money Mart, which was paid by cheque on the borrower's next scheduled payday, being the day on which the borrower was scheduled to receive his or her salary, pension benefit, or any other regularly scheduled payment.

7. The settlement provided for the Class to be expanded and the Class Period in the original certification order of Hoy J. to be extended to the date on which the Ontario payday lending legislation and regulations are fully implemented, or December 31, 2009, whichever occurs first.

8. Class Members should pay particular attention to the term of the settlement that provides that all debts owed by Class Members to Money Mart on April 30, 2009 that are still outstanding on the date the settlement is approved will be released ("forgiven") by Money Mart. Each Class Member who does not pay off this debt to Money Mart will receive a benefit equal to the debt if the settlement is approved.

9. If you owed Money Mart any money as of April 30, 2009, be sure to read the questions and answers here.

10. For the reasons set out in the Press Release of June 9, 2009, the representative plaintiffs and class counsel believe that the proposed settlement is a fair and reasonable resolution under all the circumstances and in the best interests of the Class. The litigation was long and hard fought. If the plaintiffs obtained a substantial judgment after trial, there was a serious risk of insolvency of Money Mart making collection on the judgment very uncertain. Also, the government has passed legislation to regulate the payday loan industry making similar charges legal in the future.

11. The court will decide whether to approve the settlement at a hearing on a date to be fixed in early 2010.

12. 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.

13. Please review the Summary Settlement Agreement for further details.

14. A Detailed Settlement Agreement is being prepared and when available will be posted on this website.

15. Please continue to monitor this website for information on the status of the action and the proposed settlement.

16. A list of frequently asked questions may be reviewed here.

17. If you have questions which are not answered on this website and would like to speak to someone at Sutts, Strosberg LLP about this class action, please use our toll-free line 866.396.3229.

18. If you would like to know more about how a class action works, please click here.

Update: June 29, 2009