EDMONTON - An Edmonton-based financial company has received court approval to settle a class action lawsuit over its allegedly excessive charges for payday loans.
The Cash Store Financial Services has announced that the 2004 lawsuit filed in Ontario concerns brokerage fees and interest charged to customers of The Cash Store and Instaloans.
Under terms of the settlement, the company says it will set up funds of $1.5 million in cash and $1.5 million in credit vouchers for customers outside of Alberta and British Columbia.
Some of the cash will be used to make payments to customers outside of those two provinces who obtained and repaid a payday loan in full.
The credit vouchers, which will have no expiry date, could be used to pay future or existing outstanding brokerage fees on payday loans brokered by The Cash Store or Instaloans.
Cash Store Financial operates more than 410 branches across Canada.
