Nov. 3 (Bloomberg) -- National Money Mart Co., a unit of check-cashing chain Dollar Financial Corp., lost a bid to decertify a group lawsuit in Canada over the fees and interest it charges on short-term loans.

The Court of Appeal for Ontario today rejected Money Mart's second appeal of the certification of the class-action suit, which seeks more than C$300 million ($253 million) in damages for 210,000 people who claim to have paid criminal rates of interest on their loans.

Dollar and Money Mart are accused of charging interest that exceeds the maximum 60 percent annualized rate allowed under Canadian law. The estate of Margaret Smith, a pensioner who died before the case reached trial, said late fees and a check- cashing fee charged by Money Mart resulted in effective interest rates of as much as 578 percent.

Money Mart introduced so-called pay-day loans into Canada in 1996, the same year it was acquired by Berwyn, Pennsylvania- based Dollar. Dollar, which operates more than 1,300 stores, provided Money Mart with C$105 million to buy out franchisees in 1997 and to expand the network of stores offering such loans.

The case is between Kenneth Smith and National Money Mart Co., Court of Appeal for Ontario, C49114.

To contact the reporters on this story: Joe Schneider in Miami at jschneider5@bloomberg.net.

Last Updated: November 3, 2008 13:12 EST