Class action settlement for borrowers of Cash Store and Instaloans

A successful class action lawsuit against two payday loan companies in Ontario has concluded.

Now, the challenge is to find the recipients of the $10 million dollar settlement.

There are potentially 100,000claimants across the province, includingin Sudbury.

As a result of the lawsuit, people who took a payday loan from either the Cash Store or Instaloans after September 1, 2011 are entitled to a portion of the settlement.

Jon Foreman, of Harrison Pensa,the law firm behind the big win, said the lawsuit looked at interest rates and fees.

"Borrowers were charged too much according to the theory of the case," Foreman said, "and they're entitled to the return of some of that money."

"Under the Ontario Payday Loans law, the total cost of borrowing cannot exceed 21 cents for every dollar borrowed," Foreman said, "Cash Store and Instaloan were universally above, and in some cases as high as 45%."

He said across northeastern Ontario there were26 stores of the Cash Store and/or Instaloans, whichtranslates to around130,000 loans, given to 30,000 people.

There were six stores in Sudbury and 30,000 loans given out.

Anyone who borrowed money from these stores can go to thewebsite: www.takebackyourcash.comto file a claim.They have until October31 to do so.

Law firm now haslistof borrowers since 2011

Documented proof is not required to file a claim. Foreman said as part of thesettlement the law firm was given a list of borrowers who look out loans over the timeframe.

As part of those records, Harrison Pensawas also given contact information for these borrowers.

Foreman saidover the next few months his team will be mailing out letters, or contacting potential claimants by phone.

Right now the minimum amount each eligible claimant could get is $50, however Foreman said that could increase depending on the number of claimants.

Foreman reassuredpotential claimants that it will not cost them anything to file a claim. The lawyers were already paid as part of the settlement.

All the Cash Stores and Instaloans across Ontario have shut down. The parent companies filed bancruptcy.

Morning North7:50Class action lawsuit settlement for payday loan borrowers

Two payday loan stores were on the losing end of a class action lawsuit and some of their borrowers may be entitled to some of the settlement money. We spoke with lawyer behind a class action lawsuit to get more details.