A class action lawsuit against Money Mart might be a windfall for some consumers.
Any B.C. resident since 2003, who has borrowed from Money Mart, is automatically included in the suit, which is set to proceed in January of next year.
The law firm spearheading the class action is now running ads --which would allow you to opt out of the class action ---or people who moved to other provinces to opt -in.
The suit is seeking to recover fees paid in excess of the 60 per cent annual interest charged on pay day loans through Money Mart. Sixty per cent is the current cap for interest under Canadian law.
But there are a variety of fees charged on top of that interest -that can really add up. For example: a fee just to fill out paper work.
Lawyers for the class action will argue that those fees constitute interest. Money Mart is defending the action. At stake is hundreds of millions of dollars.
A similar case in Ontario has been settled. Instead of money going back to consumers, that settlement calls for a reduction of rates and debt forgiveness. The agreement still needs court approval.
Come November 1st pay day loan companies like Money Mart will be regulated by the province.
The maximum charges for short-term loans will be capped at 23 per cent of the principal and that must include interest and all other fees. And borrowers will have the right to cancel the loan by the end of the following day, without paying any charges.
Business Practices Consumer Protection authority is going to oversee the regulations for the province.
With a report from CTV British Columbia's Chris Olsen
