Dollar Financial Corp., a Berwyn-based international financial services company, has announced that it intends to settle a class-action lawsuit brought against its Canadian subsidiary, National Money Mart Co.
Customers of National Money Mart had alleged that they were charged fees in excess of the statutory limit for payday loans made to them since 1997.
Under the agreement, which admits no wrongdoing and still requires court approval, payments of C$27.5 million ($24.9 million U.S. as of today) will be made to plaintiffs over the next two years. In addition, National Money Mart would forgive C$43 million of defaulted indebtedness of class members and restore those customers to "good standing."
And C$30 million more in transaction credits would be provided to the group for use on future transactions on most National Money Mart products.