Settlement of class actions for borrowers of Cash Store and Instaloans
A successful class action lawsuit against two payday loan companies in Ontario has ended.
Now the challenge is to find the recipients of the $ 10 million settlement.
There are potentially 100,000 applicants across the province, including Sudbury.
As a result of the lawsuit, people who took out a payday loan from Cash Store or Instaloans after September 1, 2011 are entitled to part of the settlement.
Jon Foreman, from Harrison pensa, the law firm behind the big win, said the lawsuit was about interest rates and fees.
“The borrowers have been charged too much according to the theory of the case,” said Foreman, “and they are entitled to be reimbursed for some of that money.”
“Under Ontario’s payday loan law, the total cost of borrowing cannot exceed 21 cents for every dollar borrowed,” Foreman said, “Cash Store and Instaloan were universally on top, and in some cases up to 45%. “
He said that across northeastern Ontario there was 26 Cash Store and / or Instaloans stores, which translates into approximately 130,000 loans, granted to 30,000 people.
There were six stores in Sudbury and 30,000 loans issued.
Anyone who has borrowed money from these stores can visit the website: www.takebackyourcash.com to file a complaint. They have up to OOctober 31 to do so.
The law firm now has a list of borrowers since 2011
Documented proof is not required to file a claim. Foreman said as part of the settlement, the law firm received a list of borrowers who are looking for loans over the period.
As part of these files, Harrison Pensa also received the contact details of these borrowers.
Foreman said over the next few months his team will send letters or contact potential applicants by phone.
Right now, the minimum amount each eligible claimant could get is $ 50, but Foreman said that could increase depending on the number of claimants.
Foreman reassured potential plaintiffs that it would cost them nothing to file a claim. The lawyers were already paid as part of the settlement.
All of Ontario’s Cash Stores and Instaloans have closed. The parent companies have filed for bankruptcy.
Morning North7:50Class Action Settlement for Payday Loan Borrowers