1. A proposed class action has been commenced by Carol Rogers of Windsor, Ontario against all Premiere Cash Advance franchises operating in Canada, with the exception of British Columbia and Quebec, and their franchisor PFS Group Inc., as well as against a number of individuals who are the purported principals of the Premiere Cash Advance network. The lawsuit alleges that Premiere Cash Advance violates section 347 of the Criminal Code of Canada by charging and collecting fees and interest at an effective annual interest rate in excess of 60% on payday loans which are either repaid or rolled over on the borrower's next payday. The law firms of Paliare Roland (Toronto), Koskie Minsky (Toronto) and Sutts, Strosberg LLP (Windsor and Toronto) have agreed to act together to prosecute this action.
2. Although Premiere Cash Advance claims to charge interest on its payday loans at 60% per annum, however, the effective annual interest rate on Ms. Rogers loans was 80.5%.
3. Premiere Cash Advance also charges other fees on its loans that it calls application, documentation and verification fees. Ms. Rogers asserts that all of the interest and fees charged and collected by the defendants on loans are "interest" within the meaning of the criminal interest provisions of the Criminal Code of Canada. In this context, Ms. Rogers paid an effective annual interest rate on her loans of 3,795.5%.
4. Ms. Rogers seeks to represent all persons who obtained payday loans from any Premiere Cash Advance store in Ontario, and elsewhere in Canada except British Columbia and Quebec on or after February 1, 2001 (the "Class"). She also seeks damages in the amount of all payday loans advanced to the Class or, alternatively, restitution of the total amount of interest paid by the Class to Premiere Cash Advance plus punitive damages in the sum of $25 million. For more details about the allegations, please review the statement of claim.
5. Certain defendants delivered a notice of intent to defend on January 5, 2005. The notice of intent to defend may be viewed here.
6. If you would like to speak to someone at Sutts, Strosberg LLP about this class action, please use our toll free line 800.229.5323.
7. If you would like to know more about how a class action works, please click here.
IMPORTANT NOTE
This website has been developed to provide general information to potential class members on a class action that has been commenced concerning pay day loans.
The site is not designed to answer questions about your individual situation or entitlement. Do not rely upon the information provided on this website as legal advice in respect of your individual situation nor use it as a substitute for individual legal advice.
The information collected about potential class members will assist counsel in prosecuting the class action and assessing what damages were suffered by the class as a whole. Providing the information requested does not make you the client of Sutts, Strosberg, LLP, Koskie Minsky LLP or Paliare Roland. The court will ultimately decide who will be included as a class member.
This website will be updated from time to time to provide potential class members with information as it becomes available.
