Money Mart and Dollar Financial Corp are being sued for allegedly charging an illegal check cashing fee that violated Canada’s small loan laws. The class action is looking for $185M by 264,000 former borrowers for check-cashing fees and interest plus punitive damages between 1997 and 2007.
Vancouver based Money Mart is claiming to only have a received a small percentage of the proceeds, siting the franchise owners as the main beneficiaries of the deal. They also contend that many fees could not be considered as interest. The trial is scheduled for May 4th.
I’m a bit confused b/c I was under the impression that payday loans in Canada are not illegal.
You can read the full article at Bloomberg.
