VICTORIA, June 20, 2012 /CNW/ - Consumer Protection BC has identified 3 new contraventions where Cash
Store Financial Inc. has violated BC's payday lending laws. Cash Store
Financial Inc. is a Canadian payday lender, more commonly known as The
Cash Store or Instaloans.
During routine inspections, Consumer Protection BC discovered that
these contraventions occurred on 30 occasions. Cash Store has been ordered to pay a total of $6,200 in administrative penalties for these
violations which include:
Failing to include license numbers in representation and visual
Failing to include the expiry dates for issued cash cards in loan
Requesting or requiring a payment from a borrower before it is due under
the loan agreement
"We are committed to enforcing the law and ensuring that consumers are
aware of their rights," says Manjit Bains, Vice President of Corporate
Relations for Consumer Protection BC. Consumer Protection BC also
wants to take this opportunity to remind consumers that the total fees
for a payday loan can never exceed $23 per $100 and that payday lending
contracts are required to include specific information and disclosure
statements. These contract content requirements include:
The total amount owed including fees and interest.
The time frames of the payday loan.
The payment amounts and due dates.
The borrowers cancellation rights, stated clearly.
Cash Store has 30 days to submit a request for reconsideration of the
new decision. Updates about payday lending can be found at www.paydayloanrightsbc.ca. Consumers with questions about payday lending in BC may contact
Consumer Protection BC toll free at 1-888-564-9963 or email@example.com.
About Consumer Protection BC: Consumer Protection BC is a not-for-profit
corporation created to strengthen consumer protection in BC and enforce
consumer protection laws. The organization's vision is confident
consumers and trusted businesses in a thriving marketplace. Consumer
Protection BC licenses and inspects specific industries, responds to
inquiries, investigates alleged violations of consumer protection laws,
and educates consumers and businesses about their rights and
responsibilities under the law. For more information: www.consumerprotectionbc.ca. Twitter @ConsumerProBC.
SOURCE Consumer Protection BC
For further information:
Media Contact Only:
Tatiana Chabeaux-Smith, Manager of Corporate Communications
Consumer Protection BC