A settlement has been reached in the proposed class action brought against payday lender Cash Money Cheque Cashing Inc. in respect of all claims for the payment of excessive interest, other than in the Provinces of British Columbia and Quebec. The settlement has been made without any admission of liability by Cash Money, and remains subject to the approval of the Ontario Superior Court of Justice.
Under the terms of the settlement, every Cash Money payday loan customer who is not in default of repayment of the loan will be entitled to receive a voucher valued at $50.00 which will be fully transferable, and may be used to pay for any payday loan services provided by Cash Money, including towards repayment of a current outstanding loan, or future loan. A total of $4,750,000.00 worth of vouchers will be available to be claimed by the class members. To qualify to receive a payment, customers will have to complete a claim form and submit it to Cash Money. If the settlement is approved, the claim forms will be available at any Cash Money location outside of British Columbia.
In addition to the vouchers, Cash Money will pay to the Ontario Class Proceedings fund an amount equivalent to 10% of each redeemed voucher. Class counsel will be seeking court approval for Cash Money to pay their legal fees in the amount of $380,000.00 plus disbursements and taxes.
The hearing of the motion for certification as a class action and settlement approval will take place on Monday, June 15, 2009 .
APRIL-17-09: Cash Money Cheque Cashing Inc Settles Canadian Class Action [PR-CANADA: POTENTIAL SETTLEMENT REACHED IN CHECK CASHING CLASS ACTION]
