WHAT IS THE CLASS ACTION ABOUT
The Class Action claims that the loans provided by The Cash Store, Instaloans and LoansAlberta had an unlawful structure and that members of the class were charged too much money for interest on their loans and for other fees on credit cards, debit cards, bank accounts, and for other items. Among other things, the Class Action asks the Court to order the improper fees and interest be returned to class members.
CSF OBTAINS CCAA PROTECTION
On April 14, 2014, Cash Store Financial Inc., which operated The Cash Store and Instaloans ("CSF"), became insolvent and obtained protection from its creditors under the Companies' Creditors Arrangement Act ("CCAA") by order of the Ontario Superior Court of Justice (the "Ontario CCAA Court.") The CCAA protection extends to the Directors and Officers of CSF. CSF no longer operates and all of its assets were sold while it was under CCAA protection. Claims against it were then managed by the Ontario CCAA Court under Canadian insolvency law.
SETTLEMENTS HAVE BEEN REACHED
Lawyers for class members ("Class Counsel") in the Class Action created settlements with CSF, and its Directors and Officers, and DirectCash within the CCAA Proceedings (collectively, "the Settling Defendants").
The Settling Defendants together have paid into trust over $5.9 million, plus a share of any future litigation recoveries by the Estate of CSF, to settle the Class Action. In exchange, the litigation has ended and they have been provided with a full release for all legal claims made against them (the "Settlements.") There are approximately 700,000 former customers of The Cash Store, Instaloans and LoansAlberta potentially eligible to share in the settlement amount.
The Settlements were approved by the Ontario CCAA Court and the Manitoba Court of Queen's Bench on November 19, 2015.
WHO IS INCLUDED?
This settlement includes loans from the Cash Store/Instaloans borrowed between December 2, 2008 and February 2015.
HOW IS MY REFUND CALCULATED?
A complex formula is used to calculate the amount of the refunds. It is based on the number of loans you took, the time period in which you took them, the Province you borrowed in and the number of people that come forward and submitted a claim form.
WHO IS ADMINISTERING THE SETTLEMENT?
The Settlement is being administered by our law firm, Bennett Mounteer LLP along with Epiq Systems Ltd. Epiq is a company based out of Portland, Oregon that specializes in Class Action settlements. They have been court appointed to assist in the administration of this settlement.