A class action is alleging that a number of companies doing business as 310 Loans have charged criminal interest rates.
Representative plaintiff Matthew Lee of Calgary launched the suit, filed October 18 in BC Supreme Court, on behalf of anyone who:
•borrowed a payday loan from 310 Loans by telephone or online while in any province but B.C.;
•repaid the loan and fee charged on the due date or within 160 of the advance; and either
•executed a loan agreement with 310 that contains a choice of law and exclusive jurisdiction clause in favour of B.C. law and courts, or opts in to the proceeding.
Lee has alleged that the companies operating as 310 Loans, plus its directors Nathan Slee, Daniel G. Slee and Henk Veldhuis, have charged criminal annual interest rates that, with the inclusion of all loan fees, “far exceed” 60% on the principal of each loan.
Lee claims he borrowed $300 from 310 Loans on July 6, 2009 for a 19 day period. He further alleged that on July 21, he repaid $372, which included a $72 loan fee.
The defendant companies named in the suit are: Direct Credit West Inc., Direct Credit Atlantic Inc., Direct Credit BC Inc., Direct Credit Canada Inc., Direct Credit 204 Inc., Direct Credit 564-574 Inc., Direct Credit Holdings Inc., Direct Credit Ontario Inc., Direct Credit Operations Inc., Direct Credit Payday Loans Inc., Direct Credit Services Inc. and Nationwide Payday Advance Ltd.
None of the allegations have been proven in court. A response to the civil claim had not been filed by press time. •
