Dollar Financial Corp Announces Agreement to Settle British Columbia, Canada Class Action Litigation

Dollar Financial Corp (NASDAQ:DLLR), a leading international financial services company serving unbanked and under-banked consumers, announced today that it has reached an agreement to settle its British Columbia class action litigation, in which the plaintiffs claimed that the business model used by the Company’s Canadian subsidiary, National Money Mart Company (NMMC), resulted in the collection of fees in excess of the statutory limit for payday loans made since 1997. In addition, the Company announced court approval of the previously announced settlement of its comparable Ontario class action litigation.

Jeff Weiss, the Company’s Chairman and Chief Executive Officer, stated, "Our agreement to settle the British Columbia litigation, coupled with the court’s approval of our Ontario settlement, accelerates our progress in putting behind us the legal challenges to our payday loan product, all of which relate to periods of time before the 2009 adoption in British Columbia and Ontario of payday loan industry regulations. NMMC presently provides payday loans in both provinces below the regulations’ rate caps and continues to be the lowest cost provider in those provinces.”

Under the summary terms of the British Columbia settlement, the Company will create a settlement fund in an amount of C$24.75 million, consisting of C$12.375 million in cash and C$12.375 million in vouchers. Fees payable to plaintiffs’ counsel will be paid from this fund. The remaining amount of the fund will be available to class members who make claims, with the Company receiving a credit for any unpaid debts incurred through November 1, 2009 and owed by claimants to the Company. As part of the settlement, the Company will release all debts incurred through November 1, 2009 by class members who do not make a claim, up to the total check cashing fees paid by those class members through that date. The vouchers will be in paper form, will not be transferable, will be subject to cash redemption for six months after their three-year life, and will be available to be applied during the three years generally in C$5.00 increments to product transactions on most of NMMC’s products. Any amounts remaining in the settlement fund after the redemption period will be returned to NMMC.

The British Columbia settlement will be set forth in a definitive settlement agreement which will be subject to final court approval. The Company expects final settlement approval by June 30, 2010, although there can be no assurances in that regard. The Company expects to record a charge of C$12.375 million associated with the cash component of the settlement fund, and an additional non-cash amount that will be based on the expected value of the vouchers.

The Company announced the expected settlement of its Ontario class action litigation in June 2009 and at that time recorded a provision for the expected costs of the Ontario settlement in the quarter ended June 30, 2009. After a hearing on February 22, 2010, the Ontario Superior Court of Justice released its orders on March 3, 2010 approving the settlement. The court order is subject to appeal for 30 days.

About Dollar Financial Corp

Dollar Financial Corp is a leading diversified international financial services company primarily serving unbanked and under-banked consumers. Its customers are typically service sector individuals who require basic financial services but, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. To meet the needs of these customers, the Company provides a range of consumer financial products and services primarily consisting of check cashing, short-term consumer loans, automobile loans and services, pawn lending, Western Union money order and money transfer products, currency exchange, gold buying, reloadable VISA® and MasterCard® branded debit cards, electronic tax filing, and bill payment services.

At December 31, 2009, the Company’s global store network consisted of 1,172 stores, including 1,043 company-operated financial services stores and 129 franchised and agent locations in the United States, Canada, United Kingdom, Republic of Ireland, and Poland. The financial services store network is the largest network of its kind in each of Canada and the United Kingdom and the second-largest network of its kind in the United States. The Company’s customers, many of whom receive income on an irregular basis or from multiple employers, are drawn to the convenient neighborhood locations, extended operating hours and high-quality customer service. The Company’s financial products and services, principally check cashing, money transfer, pawn lending and short-term consumer loan programs, provide immediate access to cash for living expenses or other needs. For more information, please visit the Company's website at www.dfg.com.

Forward Looking Statement

This news release contains forward looking statements, including statements regarding the following: summary terms, finalization and court approval of the settlement of British Columbia litigation; the expiration of the appeal period regarding court approval of the Ontario settlement; the Company’s future results, growth, guidance and operating strategy; current litigation matters; the global economy; the effects of currency exchange rates on reported operating results; the developing regulatory environment in Canada and the United States; the impact of future development strategy, new stores and acquisitions; and the performance of new products and services. These forward looking statements involve risks and uncertainties, including: uncertainties related to the effects of changes in the value of the U.S. dollar compared to foreign currencies; and risks related to: the regulatory environments; current and potential future litigation; the integration and performance of acquired stores; the performance of new stores; the impact of debt financing transactions; the results of certain ongoing income tax appeals; and the effects of new products and services on the Company’s business, results of operations, financial condition, prospects and guidance. There can be no assurance that the Company will attain its expected results, successfully integrate any of its acquisitions, or attain its published guidance metrics, or that ongoing and potential future litigation or the various FDIC, Federal, state, Canadian or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company’s operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company’s filings with the Securities and Exchange Commission, the Company’s annual reports and Forms 10-Q and 10-K. You should not place any undue reliance on any forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

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