The representative plaintiff brought a motion seeking approval of a class action settlement and class counsel fees under s. 29 of the Class Proceedings Act, 1992.
The underlying action alleged that a credit card issuer charged cash advance fees and interest that could produce an effective annual interest rate exceeding the criminal interest threshold under s. 347 of the Criminal Code.
After nearly nine years of litigation and mediation, the parties agreed to an $8 million settlement fund, including cy près distribution to the Law Foundation’s Access to Justice Fund and account credits for qualifying cardholders with open accounts.
The court found the settlement fair, reasonable, and in the best interests of the class, approving the settlement and class counsel fees but declining to award an honorarium to the representative plaintiff.
