Class action settlement for borrowers of Cash Store and Instaloans
Borrowers from either Cash Store or Instaloans in Sudbury can file a claim after class action lawsuit
A successful class action lawsuit against two payday loan companies in Ontario has concluded.
Now, the challenge is to find the recipients of the $10 million dollar settlement.
There are potentially 100,000 claimants across the province, including in Sudbury.
As a result of the lawsuit, people who took a payday loan from either the Cash Store or Instaloans after September 1, 2011 are entitled to a portion of the settlement.
Jon Foreman, of Harrison Pensa, the law firm behind the big win, said the lawsuit looked at interest rates and fees.
"Borrowers were charged too much according to the theory of the case," Foreman said, "and they're entitled to the return of some of that money."
"Under the Ontario Payday Loans law, the total cost of borrowing cannot exceed 21 cents for every dollar borrowed," Foreman said, "Cash Store and Instaloan were universally above, and in some cases as high as 45%."
He said across northeastern Ontario there were 26 stores of the Cash Store and/or Instaloans, which translates to around 130,000 loans, given to 30,000 people.
There were six stores in Sudbury and 30,000 loans given out.
Anyone who borrowed money from these stores can go to the website: www.takebackyourcash.com to file a claim. They have until October 31 to do so.
Law firm now has list of borrowers since 2011
Documented proof is not required to file a claim. Foreman said as part of the settlement the law firm was given a list of borrowers who look out loans over the timeframe.
As part of those records, Harrison Pensa was also given contact information for these borrowers.
Foreman said over the next few months his team will be mailing out letters, or contacting potential claimants by phone.
Right now the minimum amount each eligible claimant could get is $50, however Foreman said that could increase depending on the number of claimants.
Foreman reassured potential claimants that it will not cost them anything to file a claim. The lawyers were already paid as part of the settlement.
All the Cash Stores and Instaloans across Ontario have shut down. The parent companies filed bancruptcy.
With files from Angela Gemmill. Edited/packaged by Casey Stranges