EDMONTON, April 27 /CNW/ - The federal parliament yesterday passed Bill
C-26, the Payday Loan Act, which will enable governments to implement consumer
protection measures specific to the payday advance industry.
Rentcash Inc. welcomed passage of C-26 but urged provincial regulators
against creating monopolies through rate caps that will distort the market.
"Rentcash Inc. has been a leading proponent of consumer protection
measures for the payday advance industry in Canada," said Gordon J. Reykdal,
Chairman, President and CEO. "Rentcash has the largest network of
corporately-owned payday advance companies in Canada. We were one of the first
companies to implement a ban on rollovers. We obviously welcome provincial
initiatives to ban rollovers which will place all industry participants on a
level playing field."
Several provinces, including Manitoba, Nova Scotia, Saskatchewan and
British Columbia have either introduced or passed legislation to facilitate
industry regulation. Several others have indicated that they may also bring
forth consumer protection legislation in the near future.
During its final review of C-26, the Senate Committee on Banking, Trade
and Commerce issued a release stating that industry regulation must strike a
balance between consumer protection and a competitive lending environment. The
committee has indicated that it will monitor new regulations and initiate
federal actions if provincial legislation proves ineffective. Rentcash is
working closely with all provincial jurisdictions to ensure that their
regulatory models reflect a balanced approach.
"Rate-setting measures must not give competitive advantage to one company
over another," added Mr. Reykdal. "Rate-setting for financial services is
highly unusual in the Canadian market place and payday lending is a new and
growing industry. If regulators get it wrong, they will limit competition and
restrict options for consumers."
Rentcash is the only payday advance broker in Canada publicly traded on
the Toronto Stock Exchange (TSX:RCS). Rentcash operates more than 421 stores
across Canada under three banners: The Cash Store, Instaloans and Insta-rent.
The Cash Store and Instaloans act as brokers to facilitate payday advance
services to income-earning consumers and provide two private-label debit
cards, The Cash Store Cash Card(TM) and InstaWorld Debit Card, to those who
may not be able to obtain them from traditional banks.
Insta-rent rents brand-name furniture, appliances, electronics and
computers, with or without an option to purchase. Insta-rent operates
primarily in The Brick and United Furniture Warehouse locations, which are
part of The Brick Group, one of Canada's largest volume retailers of household
furniture, mattresses, appliances and home electronics.
Rentcash employs more than 1,800 associates and is headquartered in
For further information:
For further information: Gordon J. Reykdal, Chairman and Chief Executive
Officer, (780) 408-5118; or Michael J.L. Thompson, Vice President Investor
Relations & Government Affairs, (780) 408-5595, Cell: (613) 371-4093