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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CASH COW CLASS ACTION
CASE SUMMARY
- A proposed class action has been commenced against Lefaivre Investments
(Ottawa) Ltd., operating as Cash Cow and Bytown Capital (Ottawa)
Ltd. (collectively “Cash Cow”) by Edward Joseph of Navan,
Ontario on behalf of everyone in Canada who has taken a payday loan
from Cash Cow. The main allegation in the lawsuit is that Cash Cow
charges a criminal rate of interest on Cash Cow’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 Cash Cow has charged and continues to charge
interest on its Payday Loans in excess of the maximum legal rate
of 60% per year. The payday loans are offered by Cash Cow pursuant
to a Statement of Disclosure for Payday Advance Agreement, under
which the Borrower agrees to pay the principal, interest at the
purported rate of 59%, a borrowing or brokerage fee of an undisclosed
amount, an NSF Service Charge in the amount of $35.00, and a collections
fee in the amount of $190.00. These fees all constitute interest
as defined in the Criminal Code and, when added together, grossly
exceed the maximum legal rate of 60% per year.
- 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 Cash Cow from offering Payday Loans at
criminal rates of interest, and (iv) exemplary or punitive damages
of $15,000,000.
- The Statement
of Claim was issued on December 22, 2004. The action has been
discontinued against Bytown Capital (IT) Inc.
- The Defendants have served a Notice of Intent to Defend.
- The Defendants brought a motion seeking to change the venue of
the proceeding to Ottawa. The motion was denied, and leave to appeal
from that decision was also denied.
- The plaintiff will now be proceeding with the motion for certification.
- Certification Motion Record.
For further information concerning contact info@cashcowclassaction.com.
