Money Mart Comments on Class Action Trial



    TORONTO, April 27 /CNW/ - National Money Mart Company, Canada's leading
convenience financial service provider, issued the following statement on the
first day of a class action trial in Toronto, Ontario:
    "Money Mart is - and has been - a respected, valued service provider for
more than one million Canadians since the early 1980s. We are the leader in
the convenience-based financial services industry. Our primary goal is and
always has been to provide outstanding service to our customers. We have been
a proud member of the Better Business Bureau for over 20 years and are a
founding member of the Canadian Payday Loan Association (CPLA) that has spent
years working with governments to implement important regulation that balances
consumer protection with a viable industry.
    We believe in the merits of our business practices and in the quality of
our products and services. That is why, for the past five and a half years, we
have vigorously defended every allegation made in this action and why we
intend to continue to do so throughout this trial.
    In October 2006, the Government of Canada determined that section 347 of
the Criminal Code should be amended to exempt payday lenders who operate in
provinces having legislation in place to regulate the industry. When former
Justice Minister Victor Toews introduced Bill C-26 in Parliament to amend the
section, the Department of Justice issued a press release acknowledging that
section 347 was never designed to apply to short term loans and explained that
section 347, "...is NOT a consumer protection tool." In March 2009, the
Ontario Government set the maximum rate for payday loan in Ontario at $21 per
$100. This is the very type of regulation that Money Mart has called for and
championed for years.
    Money Mart employs more than 2,500 people. We just celebrated our 26th
anniversary in Canada and are a fixture in Canadian communities with more than
461 store fronts. Our employees are heavily involved in their communities and
we have raised millions for important charities.
    Our customers are educated, middle-income Canadians who borrow an average
of $300 for approximately 10 days to cover unexpected expenses. Customers know
the cost of borrowing and deliberately and knowingly choose a payday loan over
other options such as overdraft, credit cards or lines of credit. This is
clearly demonstrated in the largest-ever study of payday loan customers in
Ontario (500 respondents) conducted in 2007 by Pollara and available at:
http://www.cpla-acps.ca/english/mediastudies.php."




For further information:

For further information: Joanne Kearney, Mobile: (416) 804-5949,
joanne.kearney@fleishman.ca

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NATIONAL MONEY MART CO.

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