Windsor law firm Sutts, Strosberg announced this week it has reached a $100-million settlement in the Money Mart lawsuit.
The lawsuit was filed way back in 2003, alleging Money Mart and Dollar Financial for charging illegally high rates of interest. The lawsuit also claimed that the fees charged by Money Mart for what it called “fast cash advances” should be considered part of the “criminal interest rate” charged by the company.
As many as 264,000 plaintiffs owe the payday lender a total amout of $43 million. That debt will be forgiven as part of the settlement. In addition, Money Mart must pay the complaimanynants a total of $27.5 million in cash and $30 million in coupons that can be used in future loan transactions.
The eventual payout to the plaintiffs will likely be about $380 on average.
According to plaintiffs lawyer Harvey Strosberg the settlement still has to be approved by the court, the ruling is expected within this this year.
Money Mart tried its best to quashed up the case in the Supreme Court of Canada .