A settlement of more than $10 million has been reached in a class-action lawsuit in Ontario against now-defunct payday loan lenders formerly known as the Cash Store and Instaloans, some of their directors and officers, some of their lenders and a group of companies owned by or affiliated with Calgary-based DirectCash Payments Inc.
London, Ont.-based law firm Harrison Pensa LLP initiated the class-action lawsuit on behalf of all persons in Canada who entered into payday loan transactions with the Cash Store, which includes The Cash Store Financial Services Inc., The Cash Store Inc. and Instaloans Inc., in Ontario on or after Sept. 1, 2011.
The class-action lawsuit claims that borrowers were charged too much money for interest and fees on payday loans, lines of credit, credit cards, debit cards, insurance policies, bank accounts and other items.
On Nov. 19, 2015, the Ontario Superior Court of Justice will be asked to approve the settlements, the proposed plan for distributing the settlements to borrowers, and the fees of the lawyers for borrowers. If the court approvals are granted, borrowers can make a claim for unlawfully charged fees and interest.
Details about the proceedings, the settlement and a proposed plan for distributing the settlement to borrowers can be viewed at www.ontariocashstoresettlement.com.