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 advertisements
- Failing to include the expiry dates for issued cash cards in loan agreements
- 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 firstname.lastname@example.org.
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