Class Actions
| IMPORTANT NOTE:
This website has been developed to provide general information
to potential class members on a number of class actions that
have 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 Koskie
Minsky LLP, Paliare Roland Rosenberg Rothstein LLP, or Sutts,
Strosberg LLP. The court will ultimately decide who will be
included as a class member.
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UNICASH CLASS ACTION
CASE SUMMARY
- A proposed class action has been commenced against Unicash Franchising
Inc., c.o.b. as Unicash Financial Centres and Planinvest Consulting
Limited, c.o.b. as Unicash (“Unicash”) by Kenneth Mortillaro
of Toronto, Ontario on behalf of everyone in Canada who has taken
a Payday Loan from Unicash. The main allegation in the lawsuit is
that a criminal rate of interest is charged on Unicash’s payday
loans in violation of section 347 of the Criminal Code of Canada.
Section 347(2) of the Criminal Code defines “criminal rate”
as “an effective annual rate of interest calculated in accordance
with generally accepted actuarial practices and principles that
exceeds 60% on the credit advanced under an agreement or arrangement.”
- The law firms of Paliare
Roland Rosenberg Rothstein LLP (Toronto), Sutts
Strosberg LLP and Koskie
Minsky LLP (Toronto) have agreed to act together to prosecute
this action.
- The claim alleges that Unicash has charged and it continues to
charge interest on each payday loan comprised of three elements:
(a) interest described as a “cheque cashing fee” of
2.5% of the principal amount of the loan plus $1.99; (b) interest
described as a “handling fee” in the amount of $14.99;
and (c) interest described as a “Late Payment fee” in
the amount of $2.00 per day if the payday loan is not repaid on
the due date. But, in fact, Unicash charges a fee equivalent to
$20 per $100 borrowed, irrespective of the express terms of the
agreement. These fees constitute a criminal rate of interest as
defined in the Criminal Code.
- The relief sought on behalf of the Class includes (i) repayment
of all interest charges paid by the Class, (ii) a declaration that
the Payday Loan agreements are illegal and unenforceable, (iii)
an injunction prohibiting Unicash and Unicash Franchising from offering
Payday Loans at criminal rates of interest, and (iv) exemplary or
punitive damages of $10,000,000.
- The Amended
Statement of Claim was issued on October 21, 2003, and amended
on June 9, 2004.
- The parties have exchanged materials for the motion for certification.
- Motion
Record for Certification (motion date to be scheduled)
- Responding
Motion Record for Certification
For further information contact info@unicashclassaction.com.
