Money Mart class action

1. On June 5, 2009, the parties agreed to a proposed settlement of the class action, on the terms set out in the Settlement Agreement. The court approved the settlement by reasons dated March 3, 2010. The Approval Order of Justice Perell may be viewed here.

2. The settlement class is defined as:

all persons who, in the period August 19, 1997 to December 15, 2009, entered into a payday loan and/or fast cash advance in Ontario with Money Mart or a current or former franchisee of Money Mart which was repaid using a first party personal cheque delivered at the time the loan was obtained provided, such cheque was honoured by the bank, excluding persons who opted out on or before March 9, 2008 or who will opt out in accordance with the Approval Order.

3. The settlement has a value of approximately $120 million, made up of the following components:

(a) $13 million in cash (less the 10% levy to the Class Proceedings Fund) to be distributed to class members;

(b) $14.5 million to pay class counsels' fees, disbursements and taxes. Class Counsel have appealed this component of the settlement. A copy of the notice of appeal may be viewed here;

(c) the release of all debts owed by settlement class members to Money Mart on April 30, 2009 that were still outstanding on December 31, 2009. The value of these debts is $56,252,076;

(d) $30 million in transferable transaction credits allocated on a pro rata basis to each settlement class member who does not have a debt to Money Mart which is released under the settlement. These transaction credits can be used for certain Money Mart products in all corporate and franchise stores in Canada, except stores located in the Province of Quebec, or they may be transferred or sold to other individuals;

(d) payment of the $3,000,000 levy of the Class Proceedings Fund on the transaction credits; and

(e) payment of administrative costs estimated to be $2,000,000.

4. The debt release and the transaction credits are now available. The cash credits will be available after July 15, 2011.

5. For information on how debt release will be provided or how to obtain transaction credits, please review the Frequently Asked Questions on this website or visit the website www.moneymart.ca or call 1.866.504.7237 or visit a Money Mart store.

6. Please review the Settlement Agreement, the Notice and the Approval Order for further details and continue to monitor this website for further information.

7. A list of frequently asked questions may be reviewed here.

8. If you have questions which are not answered on this website and would like to speak to someone at Sutts, Strosberg LLP about this class action, please use our toll-free line 1.866.396.3229.

9. If you would like to know more about how a class action works, please click here.

Update: June 23, 2010