Initial Victory for Woman in Payday Loan Lawsuit
By Paul RizzoPayday Loan Writer
A woman who is suing a payday cash loan company for charging high interest rates won a partial victory in Canada Thursday.
The Supreme Court effectively ruled that Margaret Smith can sue Dollar Financial Group - the U.S. parent company of Money Mart - in Ontario court.
The high court dismissed a leave to appeal by Dollar Financial, which had argued that it had no legal relationship with Money Mart, no bad credit payday loan operations in Ontario, and therefore could not be sued in the province.
Two lower courts had already ruled that Ontario has jurisdiction in the case.
Smith, who received several payday advance loans from Money Mart, is seeking a class-action lawsuit claiming that the company charged illegal interest rates.
