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Accident and Injury Lawyer Ches Crosbie Meets the Press

Payday Lender Settles Class Action


Posted on Apr 07, 2010

 FOR IMMEDIATE RELEASE                           FOR FURTHER INFORMATION CONTACT:

April 7, 2010                                                                                         CHES CROSBIE, 579-4000

                                                                                                          Email: ccb@chescrosbie.nf.net

                                                                                                                      www.ChesCrosbie.com

 

 

PAYDAY LENDER SETTLES CLASS ACTION

MONEY MART CLASS ACTION SETTLES

 

 

 A class action lawsuit against Money Mart, Dollar Financial and several named directors has settled for a value of $5 million dollars.  The settlement covers customers in Newfoundland and Labrador, Nova Scotia and New Brunswick from January 1997 to March 31, 2010 who entered into a fast cash advance loan with the Defendants and which was repaid using a personal cheque.  The settlement value is a mix of debt forgiveness, credits to customers for future business, and cash.

 

The settlement must be approved by courts in Newfoundland, Nova Scotia and New Brunswick in a joint hearing.  The hearing date is set for May 26, 2010.

 

"I am pleased that the defendants have agreed to abide by the Nova Scotia regulatory regime on a voluntary basis", said St. John's class action lawyer Ches Crosbie.  "Newfoundland still has no regulation of payday loan practices."

 

The class action lawsuits allege that interest charges by payday lenders violated the Criminal Code.  The allegations have not been proved in court.

 

The representative plaintiff in the Newfoundland lawsuit is William Squires of St. John's, a retired journalist.

 

Other Facts:

  • - Class members in Newfoundland and Labrador who can claim includes every customer of the defendants between January 1, 1997 and March 31, 2010 (the Class Period). The total number of class members in Atlantic Canada is 31,000, and the number of class members in Newfoundland and Labrador is 7,300. About two-thirds of these class members are in good standing with the defendants.

 

  • - Breakdown of settlement value is cash $650,000, credits $3.3 million, debt forgiveness $1 million.

 

  • - The three law firms who represent the plaintiffs will seek approval of fees, services tax and disbursements, totaling $600,000. The law firms are Ches Crosbie Barristers of St. John's, Wagners of Halifax, Nova Scotia, and Crocco Hunter of Woodstock, New Brunswick.

 

  • - Information about government's intentions for regulation of payday loan practices may be obtained from Department of Government Services, Minister Hon. Kevin O'Brien.

 

  • - More information is available from the Settlement Agreement and in particular the schedules to it, posted at www.ChesCrosbie.com.

 

CHES CROSBIE BARRISTERS

169 Water Street, 4th Floor

St. John's, NL  A1C 1B1

Telephone: 579-4000 or 888-579-3262

Facsimile: 579-9671

www.chescrosbie.com

 

 

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