Money Mart

1.This class action commenced in 2003 sought to require National Money Mart Company (“Money Mart”) and its parent company, Dollar Financial Group, Inc. (“Dollar Financial”) to pay damages equal to the charges on payday loans or fast cash advances on the theory that such charges breached section 347 of the Criminal Code of Canada. For more details about the scope of the action, please review the further fresh statement of claim. Money Mart defended the action asserting that its business model did not breach the Criminal Code and counterclaimed seeking the repayment of debts owed to it by its customers

2. The action was certified as a class action in 2007 and the trial of the common issues commenced on April 27, 2009. At the trial, it became clear to the parties that settlement would eliminate the risks of potential adverse outcomes for all involved. As a result of a mediation with a former judge of the Supreme Court of Canada, the Honourable Frank Iacobucci, a settlement agreement was negotiated and signed which required court approval for it to come into effect. As a term of the proposed settlement, the trial of the common issues was adjourned after about four weeks of trial. Both sides believed this proposed settlement was fair and reasonable considering all of the risks. Class Counsel recommended the proposed settlement and it was approved by the court.

Approval Hearing

3. The settlement and fee approval hearing was held on February 22, 2010.

4. On March 3, 2010, Justice Perell released his reasons for approving the settlement. You may view the reasons here.

5. Justice Perell's Approval Order dated March 3, 2010 may be viewed here.

6. The Notice of the Settlement may be viewed here.

7. The Reasons of the Court of Appeal on the issue of Class Counsel fees may be reviewed here.