Payday Loan Company To Pay Back FormerCustomers

Register now

MANITOBA, British Columbia - (01/10/06) – A payday loan company thatcharged customers more than 60% interest has agreed to refund $1.3million to borrowers under the settlement of a class action suit.People who borrowed money from Instaloans between 1998 and 2004could be eligible to receive 15% of any charges paid in excess ofthe 60% maximum rate set by law here. Lawyers for the plaintiffssaid that application fees, administration fees and interest feessometimes added up to what amounted to a rate of more than 1,000% ayear, especially if the loans were paid back within a two- orthree-week period. Plaintiffs’ lawyers claim they havealready heard from 6,000 people who qualify for asettlement.

For reprint and licensing requests for this article, click here.