Category: Class Action

  • Dollar Financial settles class action suit in Canada

    Here are the facts: it includes $27.5 million in cash, $43 million in forgiven debt and $30 million in credits – is approved by the court, the average payout will be about $380.

    Lawyer Harvey Strosberg played it cool in this statement: “We think it’s fair and reasonable and in the best interest of the class members,”.

    Yah, right Harvey. You just got the biggest payday of your life.

    Dollar’s CEO Jeff Weiss said in a statement: “While we admit no wrongdoing … this settlement will allow us to avoid the continuing substantial litigation expense that would be expected.”

    You can read more details in this article titled “Payday loan victims get $100 million.“

  • Just a weird class action settlement

    The Cash Store in Canada is settling two class action lawsuits. It should not exceed $14m and will be paid out as vouchers that can used to pay existing debts or future debts.

    It looks like the attorneys got the deal they were looking for and settled the case. These class action attorneys extremely unethical. I can’t believe they can get away with this stuff.

    Sadly, they never really say what the attorneys walk away with in these cases. I guess that’s part of the extortion deal.

    You can read more about this article in TradingMarkets.com.

  • Fast Cash Loans Settles $2.5M Class Action Suit

    Local news 5 broke the story regarding a $2.5M settlement by a payday lender, Pacific Financial Holding dba Fast Cash Loans.

    What’s remarkable is that the plantiff’s attoneys got 10,000 people to participate. I don’t know a lot about class action law suits, but each person will probably get $200 and the attorney’s will split up $500k. This does not include the attorney’s fees for the defendants.

    I guess the practical advice is don’t leave voicemails, don’t send threatening letters and be nice to people, whether they pay you or not.

    Part of the dilema for payday lenders is that if they outsource their collections, they tend to start throwing good money after bad money. This is one way to hedge your loan companies exposure.

    A collection agency out of Florida collection agency was sued in Illinois for threatening people. There did not seem to be any suits filed against the lender, in this situation.