PRL Financial
- On October 8th, 2003, a class action was commenced against the Defendants PRL FINANCIAL (ALTA.) LTD., PAYROLL LOANS (ALBERTA) LTD., AND DAVID ASH of Alberta and elsewhere. Subsequently, on August 10, 2004, a further class action was commenced against the Defendants HORNBY LOAN BROKER (ALBERTA) INC., THURLOW CAPITAL (ALBERTA) INC., DAVID FELLER, PRAVEEN VARSHNEY, SOKHIE PUAR, PATRICK WARREN. Both actions were subsequently consolidated by Court Order granted February 18th, 2005.
- The Representative Plaintiff alleges losses suffered as a result of the conduct of the Defendants in granting PAYDAY LOANS. Specifically, the Representative Plaintiff complains of the conduct of these Defendants, in lending money at rates or interest that exceed the maximum annual amount of 60% permitted by s.347 of the Criminal Code.
- Amongst other relief, the actions claim for a return of monies paid by consumers, alternatively, damages as a result of the alleged improper activity of the Defendants in the amount of $15,000,000.
- The Defendants Thurlow and Hornby attempted to resist certification of the proceeding initially by forcing the claim of the representative Plaintiff to arbitration. On November 2, 2004, Justice LoVecchio of the Court of Queen's Bench issued a written decision and ruled against the Defendants on this point.
- Subsequently, all Defendants attempted to defeat the certification of the claims on various grounds including a lack of commonality amongst various class members. The claim was certified by the Justice LoVecchio as the judge of first instance in a written decision rendered on April 22, 2005, and his decision was later upheld by the Court of Appeal in a unanimous judgment rendered March 16, 2006.
- The class as certified is comprised of individuals resident in Alberta, other than the Defendants, whos:
- borrowed money as a short term loan payable on or about the borrower's next pay day (a "Payday Loan") from the Defendants PRL Financial (Alta.) Ltd. and Payroll Loans (Alberta) Ltd. or from the Defendants Hornby Loan Broker (Alberta) Inc. and Thurlow Capital (Alberta) Inc. subsequent to January 1st, 1997;
- were charged interest fees and a loan brokerage fee ; and,
- repaid some portion of the loan amount, the brokerage fee or interest.
- Counsel have agreed on the terms of a Notice of Representative Action, Short Form of Notice, Opt Out Form, and Litigation Plan. In order to have a better understanding of what is involved in the process, Class Members are directed to the Notice of Representative Action.
- If you are a Class Member, you may receive the benefit of and will be bound by the terms of any order of the Court with respect to the common issues.
If you are a Class Member, you have the following options:- You may await the outcome of the proceedings, following which you may be entitled to the benefit of any settlement or judgment. If you choose this option, you will remain a Class Member and, subject to proving your loss, you will share in the proceeds of any settlement or judgment.
- You may elect to opt-out of the Class. If you opt-out of the Class, you will not participate in any settlement or judgment and you will not receive the benefits of any settlement or judgment. However, you will also not be bound by any settlement with or judgment against the defendants and your claim, if any, will remain unaffected. If you wish to opt-out of the Class, you must mail or deliver a written request for exclusion in the appropriate Opt Out Form by no later than August 11th, 2006. Opt-Out Forms may be downloaded from this website, obtained by phoning 1-800-682-2480 or 261-1555 (in Calgary) or by e-mailing: pcampoili@mcnallycuming.com.
- THE CURRENT OPT OUT DATE IS FRIDAY, AUGUST 11TH, 2006. THE OPT OUT FORM MUST MUST BE MAILED OR DELIVERED BY AUGUST 11TH, 2006 TO McNally, Cuming, Raymaker, 1500, 635- 8th Ave SW, Calgary AB. T2P 3M3