After fighting a class action lawsuit for six years, Money Mart has reached a settlement with plaintiffs who alleged that fees charged by Money Mart for "fast cash advances" were effectively illegally high interest rates. Ron Oriet, representative plaintiff in the action, had visited Money Mart often as a student for small loans to cover his expenses between paycheques from his part-time job. He found that the erosion of his disposable income became a vicious cycle. Although Oriet is free of any debt to Money Mart today, many other customers were not so fortunate.
Details of the settlement include the forgiveness of some $43 million in debt owed by individuals to Money Mart, plus payment of $27.5 million in cash and $30 million in coupons for future Money Mart transactions. The Windsor law firm of Sutts, Strosberg LLP, which launched the suit in 2003, said a ruling to approve the settlement is expected by the close of 2009. See Summary Settlement Agreement, Ontario Superior Court of Justice Court File # CV-08-363659-00CP. |
