Payday Loan Times

News About the Ever Changing Payday Advance Industry

Class action lawsuit against payday loan company

Filed under: Canada — John Mitsuda at 3:33 pm on Thursday, December 22, 2005

Thunder Bay, Ontario — There's been a class action lawsuit against the parent company of the two former Instaloans in Thunder Bay.

Customers in Ontario, Manitoba and Saskatchewan, who took out payday loans between Jan. 1, 1998 and April 21, 2005, have until 4:30 p.m. on Jan. 31, 2006 to register.

Calgary lawyer Bill McNally, who is representing the customers, said people making a claim can call toll-free 1-866-662-3452 or go his website. You will need to and provide your name, mailing address, social insurance number, and location of the outlet where the loan was obtained.

McNally feels between 10 to 20% of the 75,000 effected customers will join in the law suit.

Although the legal limit for payday loans is 60% in Ontario, the lawsuit claims Instaloans was charging as much as 650% interest on instant payday loans.

Georgia Payday Loan Companies Closing

Filed under: Georgia — Roman Parchowsky at 3:41 pm on Wednesday, December 21, 2005

Bainbridge, Georgia — Just recently five payday loan companies have voluntarily shut down in Bainbridge. Two more payday loan companies, "Money Now" and "Fast Cash Title Pawn" are on trial. If found guilty, this will add two more companies to the closing list.

District Attorney, Joe Mulholland, is prosecuting the two companies for violating the payday lending act with their interest "rollover."

The payday lending act, established in July 2004, made it illegal to charge more than 16% interest for any faxless payday loans under the amount of $3,000.

Mulholland said "Money Now" and "Fast Cash Title Pawn" tried getting around that law by "giving a rebate, or an option, or they're giving a gift certificate, when, in fact, there's no gift to be got."

A decision by the judge is expected to make by March.