Household Finance SMDL
The Supreme Court of Canada has ruled against Household Finance Corporation (HFC), confirming the decision of the Quebec Court of Appeal. Some 25,000 aggrieved Quebecers will receive compensation of over $100 each.
On May 13, 1999, we filed a motion for authorization to institute proceedings against Household Finance (SMDL). This company issued credit cards to customers of a number of furniture, appliance and electrical stores, including Brault et Martineau, Ameublement Tanguay and Corbeil.
Household Finance (SMDL) was sued for failing to comply with the provisions of the Consumer Protection Act. In addition to a very high credit rate (between 26% and 36%), a $10 late fee was charged to consumers who failed to make the minimum payment due by the due date indicated on the account statement.
On April 30, 2003, Superior Court Judge Maurice Laramée ruled in favor of Option consommateurs. In his ruling, the judge concluded that the imposition of a lump-sum late payment charge was illegal. He ruled that late fees must be included in credit charges. As a result, he ordered the cancellation of credit charges and the reimbursement of late fees imposed between May 1996 and December 1997 on some 30,000 consumers with credit cards financed by SMDL. Approximately $5 million should be paid in compensation to consumers.
Household Finance (SMDL) has appealed this decision.
On October 17, 2006, the Court of Appeal ordered Household Finance (SMDL) to reimburse the consumers for the late fees improperly collected and to pay them punitive damages.
Our members
You are a group member if :
- As of May 13, 1996, you purchased furniture from a dealer such as Brault et Martineau, Ameublement Tanguay and Corbeil and signed a credit contract (credit card) with Household Finance and that
- Between May 13, 1996 and December 31, 1997, you paid a late fee of $10.
Where we are
The Court of Appeal ordered Household Finance (SMDL) to reimburse the $10 late fees paid by consumers, as well as $100 in exemplary damages after deduction of legal costs and fees.
Starting in August 2008, Collectiva, the claims manager, sent a cheque to group members at the address last known to Household Finance.
Members who have moved since signing their credit contract were required to notify the claims manager of their change of address by December 21, 2008:
Collectiva
285 Place d'Youville, suite 9
Montreal, Quebec
H2Y 2A4
Telephone: 514-287-1000 or 1-800-287-8587
Fax: 514-287-1617
Email: [email protected]