1. A class action was commenced by Peggy Jane Davis of Leamington, Ontario against the entire Stop 'N' Cash franchise organization in Ontario, as well as against a number of individuals who are the purported principals of the organization. The lawsuit alleges that Stop 'N' Cash violates section 347 of the Criminal Code of Canada by charging and collecting fees and interest at an effective annual interest rate in excess of 60% on payday loans which are either repaid or rolled over on the borrower's next payday. The law firms of Paliare Roland (Toronto), Koskie Minsky (Toronto) and Sutts, Strosberg LLP (Windsor and Toronto) have agreed to act together to prosecute this action.
2. Although Stop 'N' Cash claims to charge interest at 48% per annum, it charges other fees it calls insurance premiums. The alleged insurance company, however, is not licensed to conduct business in Ontario and did not issue a certificate of insurance to Ms. Davis. The insurance company is also not in good standing in the country of its incorporation, Barbados.
3. Ms. Davis asserts that all of the interest, fees and premiums charged and collected by the defendants on loans are "interest" within the meaning of the criminal interest provisions of the Criminal Code of Canada. The plaintiff also claims that the insurance premiums are a sham designed to circumvent the criminal interest provisions of the Criminal Code.
4. This class action was certified on November 9, 2005 by order of Mr. Justice Winkler. The Class is defined as:
All persons who obtained payday loans in Ontario from a defendant operating under the business name Stop 'N' Cash on or after January 1, 1998 to November 9, 2005.
5. A copy of the certification order may be viewed here.
6. Class counsel has examined representatives of most of the defendants. Following completion of the examinations for discovery, class counsel will ask the court for an early trial date. The court has said it will use its best efforts to schedule the trial as quickly as possible.
7. If you would like to speak to someone at Sutts, Strosberg LLP about this class action, please use our toll free line 800.229.5323.
8. If you would like to know more about how a class action works, please click here..
IMPORTANT NOTE
This website has been developed to provide general information to class members and to potential class members on a class action that has been commenced concerning pay day loans.
The site is not designed to answer questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as a substitute for individual legal advice.
This website will be updated from time to time to provide class members and potential class members with information as it becomes available.
