Illegal Fees and Interest

Edmonton, Canada: (Apr-22-08) A class action lawsuit was brought against The Cash Store Financial Services Inc., formerly known as Rentcash Inc., alleging it overcharged brokerage fees and interest to customers of The Cash Store and Instaloans. The class action lawsuit claimed that the brokerage fees, in combination with interest charged by defendants on their customer loans, were over the limit prescribed by the Criminal Code of Canada. In a recent announcement, company officials stated that the company has reached a settlement in the case filed in 2004, in which it agreed to pay a restitution of brokerage fees and interest charged to customers. Officials said that the settlement is conditional on the terms of the settlement being approved by the court.

Under the terms of the agreement, Cash Store Financial is to pay, an aggregate of $1.5 million in cash and $1.5 million in credit vouchers to those customers of The Cash Store and Instaloans, who were advanced funds under a loan agreement and who repaid the payday loan plus the brokerage fees and interest in full. The effected customers are said to be outside of Alberta and British Columbia. As per the terms of the settlement, the credit vouchers may be used to pay existing outstanding brokerage fees and interest or to pay brokerage fees and interest which may arise in the future through new loans advanced to the customer. The company said that the credit vouchers are fully transferable and have no expiration date. Additionally, the company also agreed to pay the legal fees and costs of the class. [YAHOO FINANCE: ANNOUNCEMENT OF CONDITIONAL SETTLEMENT ON ONTARIO CLASS ACTION SUIT]

Legal Help

If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please fill in our form on the right.

Reader Comments

Posted by

I was a customer with City financial Sarnia.
I consolidated some loans and started payments.
I fell Ill and since paid insurance for that, I was to have had an interest freeze during my recovery.
This did not happen, by the time I was healthy I was sued, with 21% interest.
Upon paying off the settlement I received a letter today because they added another 21% interest on the original settlement which was already interest.
This time I was never served to be able to dispute this I received a letter that the court date has come and gone and garnishment to begin immediately.
Where do I even start?
I cannot believe this is ok they do this? When contacted for all previous documentation the manager laughed and said good luck with that.. Help, Please...

Add Your Comment on This Issue

Please read our comment guidelines before posting.

Note: Your name will be published with your comment.

Your email will only be used if a response is needed.

Request Legal Help