1. This class action alleges that National Money Mart Company ("Money Mart") and its parent company, Dollar Financial Group, Inc. ("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". For more details about the scope of the action, please review the further fresh statement of claim. The law firms of Sutts, Strosberg LLP (Windsor and Toronto), Koskie Minsky (Toronto) and Paliare Roland (Toronto) are prosecuting this action.
2. 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 legally "interest" notwithstanding that Money Mart calls them "fees". If the charges are all interest, then the effective annual interest rate on these loans substantially exceeds 60% and sometimes can be 329% or 578% or even more than 1000%.
3. On January 5, 2007 this action was certified as a class action. By order dated April 20, 2007, the certification order was amended. The Class is defined as:
all persons who, in the period August 19, 1997 to September 9, 2007, received a Fast Cash Advance and/or a Payday Loan in Ontario that was payable either in cash on or before the borrower's next scheduled payday, being the day on which the borrower is scheduled to receive his or her salary, pension benefit, or any other regularly scheduled payment or by cheque on the borrower's next scheduled payday, and was repaid by cheque on the borrower's next scheduled payday, payable to Money Mart or a franchisee of Money Mart.
4. A copy of the reasons of Madam Justice Hoy certifying this action as a class proceeding may be reviewed here. The certification order of January 5, 2007 may be reviewed here and the April 20, 2007 order amending the certification order may be reviewed here.
5. The plaintiffs' motion for summary judgment and the defendants' motion to stay or decertify the action were both dismissed on June 6, 2008. Justice Perell's reasons may be reviewed here. On July 7, 2008, the defendants served notices of appeal from the decision dismissing the motions.
6. If you wish, you may contact the class action counsel team by calling toll free at 800.229.5323, extension 8296. This class action affects only Money Mart customers who made a Fast Cash Advance in Ontario. If you made a Fast Cash Advance in another jurisdiction, you should contact the law firm prosecuting that action against Money Mart in that jurisdiction. A list of such firms is available here.
7. If you would like to know more about how a class action works, please click here.
PREVIOUS ORDERS
8. Money Mart brought a motion to dismiss or stop the action against it on the basis that an arbitration clause in the standard form "Fast Cash Advance" agreements required that every dispute be settled by arbitration, not by a class action.
9. Dollar Financial, a New York corporation, brought a motion to dismiss the action against it on the basis that the Ontario court did not have jurisdiction over it.
10. Both motions were argued in Toronto, Ontario on February 1 and 2, 2005 before Madam Justice E. Macdonald.
11. On June 22, 2005, Madam Justice Macdonald dismissed Money Mart's arbitration motion. She also dismissed Dollar Financial's jurisdiction motion. Her reasons may be reviewed here.
12. Both Money Mart and Dollar Financial appealed Justice Macdonald's decision to the Ontario Court of Appeal.
13. On October 7, 2005, a three judge panel of the Court of Appeal for Ontario quashed Money Mart's appeal from Madam Justice Macdonald's refusal to dismiss or stop the class action against Money Mart on the basis of the arbitration clause. The reasons of the Court of Appeal may be viewed here.
14. Money Mart sought an order from the Supreme Court of Canada granting it leave to appeal to that court from the decision Of the Court of Appeal for Ontario regarding the arbitration clause. On March 2, 2006, the Supreme Court of Canada dismissed Money Mart's application.
15. Dollar Financial's appeal to the Court of Appeal for Ontario was heard on December 2, 2005. The court reserved its decision. On May 8, 2006, the Court of Appeal dismissed Dollar Financial's appeal. The reasons for decision may be viewed here.
16. On October 12, 2006, the Supreme Court of Canada dismissed Dollar Financial's application for leave to appeal from the jurisdiction decision of the Court of Appeal for Ontario.
17. On January 19, 2007, the defendants served a notice of motion seeking leave to appeal Madam Justice Hoy's decision certifying this action as a class proceeding. On April 2, 2007 leave to appeal was denied. A copy of the transcription of the endorsement of Jennings J. may be reviewed here.
Update: July 7, 2008
IMPORTANT NOTE
This website has been developed to provide general information to potential class members on a class action that has been commenced against National Money Mart Company and its parent company, Dollar Financial Group, Inc., concerning payday loans.
The site is not designed to answer questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as a substitute for individual legal advice.
The information collected about potential class members will assist counsel in prosecuting the class action and assessing what damages were suffered by the class as a whole. Providing the information requested does not make you the client of Sutts, Strosberg LLP, Koskie Minsky LLP or Paliare Roland. The court will ultimately decide who will be included as a class member.
This website will be updated from time to time to provide potential class members with information as it becomes available.
