The suit alleges that Money Mart Company and its parent company, Dollar Financial Group, Inc. breached section 347 of the Criminal Code.

Canadian payday-loan operator Money Mart said it would vigorously defend itself in a Toronto class action trial that starts today. "We believe in the merits of our business practices and in the quality of our products and services," the company said in a statement today. "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."

The suit alleges that Money Mart Company and its parent company, Dollar Financial Group, Inc. breached section 347 of the Criminal Code of Canada by charging and collecting fees and interest at an effective annual interest rate in excess of 60%. According to court documents, plaintiffs are seeking $515 million from Money Mart and Dollar Financial.

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.

Money Mart is a founding member of the Canadian Payday Loan Association (CPLA).

Money Mart operates 461 stores in Canada and employs 2,500.