VICTORIA - Consumer Protection BC has determined that Cash Store Financial Services Inc. more commonly known as The Cash Store or Instaloans, are in violation of British Columbia's payday lending regulations and are being ordered to pay a monetary penalty as well as refund consumers for unlawful fees on their loans.
We have concluded an investigation into the business practices of The Cash Store and determined that the payday lender is in violation of the Business Practices and Consumer Protection Act and the Payday Loans Regulation in BC. After working to try to achieve voluntary compliance on a number of issues, The Cash Store has been issued a Compliance Order requiring them to pay $25,000 in penalties, reimburse Consumer Protection BC for our investigation costs and provide restitution to consumers who were charged unlawful fees on their loans.
The Cash Store has 30 days to appeal the decision and request reconsideration. Although there is still a process to follow before this case is concluded, we felt it was important to share information with consumers to help them make informed choices when getting a payday loan. We are committed to protecting consumers and promoting a level playing field for business.
"We are taking this opportunity to advise consumers of their rights under BC's payday lending law" says Manjit Bains, Vice President of Corporate Relations. "Consumers should not be charged for cash cards, or be charged more than 23% of the amount they borrowed, including all fees and charges." For additional consumer tips, please visit the payday lending section of our website.
British Columbia introduced its Payday Loans Regulation on November 1, 2009 requiring all payday loan businesses to be licensed with Consumer Protection BC. Consumer Protection BC uses a progressive enforcement model and attempts to educate businesses and reach voluntary compliance prior to utilizing our other enforcement tools. To better understand our enforcement model and the tools at our disposal, please visit the enforcement section of our website.
Consumer Protection BC is a not-for-profit corporation that was created to strengthen consumer protection in BC and enforce consumer protection laws. We balance the interests of all parties to promote a marketplace that is fair for both BC consumers and businesses. We license and inspect specific industries, respond to inquiries through our Inquiry Centre, investigate alleged violations of consumer protection laws, and educate consumers and businesses about their rights and responsibilities under the law. For more information about our organization, please visit our corporate website at www.consumerprotectionbc.ca.
