Payday Loan Company in violation of lending law
29 October 2013 - Which Way To Pay
Payday Loan Company ordered to pay back hundreds
Payday loan company, The Cash Store, has been ordered to pay back hundreds of dollars to 61 Manitobans who were charged too much in fees.
Payday Loan Company violated the maximum allowable charge
The Cash Store Financial Services Inc, violated the maximum charge for short term loans, says The Manitoba government consumer protection office. The maximum charge for short term loans is currently set at $17 for every $100 borrowed including all related fees. The company which owns The Cash Store charged additional fees for cash cards or electronic funds transfers which brought the total borrowing cost above the legal limit. "It's very important those thresholds are not exceeded, because these are very vulnerable citizens," Gail Anderson, director of the consumer protection office said last week.
People who paid too much at Cash Store or Instaloans outlets might be eligible for a refund
A spokesperson for Cash Store Financial Services told CBC News late Tuesday that it respects Manitoba laws and has paid back all the money it owed. The lines of credits offered by the company are legal, the spokesperson added. The government says people who paid too much at Cash Store or Instaloans outlets between Oct. 18, 2010, and Oct. 17, 2012, may be eligible for a refund.
Payday loan companies must comply with regulatory framework
The Manitoba’s payday lending law requires all businesses offering, arranging or providing payday loans to Manitobans are licensed by the Consumer Protection Office and comply with the Manitoba regulatory framework.