Canada's top court on Thursday cleared the way for a woman to go ahead with a lawsuit against a payday loan company.

The Supreme Court of Canada denied Dollar Financial Group, the U.S. parent of Money Mart, leave to appeal a lower court ruling.

The Supreme Court decision means Margaret Smith, who had taken out several loans from Money Mart, can go ahead with her attempt to seek a class action lawsuit in Ontario.

Dollar Financial has argued that Ontario had no jurisdiction in the case, but the high court disagreed and sided with two lower court rulings.

Smith is claiming that the payday loan company charges illegal interest rates.

Earlier this month, the federal government tabled legislation that would give provinces and territories the power to regulate the amount payday loan companies charge.

Bill C-26, if passed, would give the provinces the ability to put a cap on fees levied by the controversial industry, which gives small loans to consumers. Those loans sometimes include service charges and other fees that can effectively add up to several hundred per cent on an annual basis.