Payday Lending Consumers to Start Getting Over $1 Million in Refunds

VICTORIA, Dec. 10, 2012 /CNW/ - British Columbians who were overcharged for payday loans from The Cash Store or Instaloans are eligible for refunds estimated to total approximately $1 million. In March, 2012, Consumer Protection BC ordered the parent company, Cash Store Financial Inc., to stop charging illegal fees and repay customers who were overcharged. As a result of a Supplemental Compliance Order issued on November 30, 2012, the refund process is now scheduled to begin on December 11^th 2012. The refund process will be overseen by an independent auditor and Consumer Protection BC. Following from this process, it's expected that all illegally-charged funds could begin to be refunded as soon as February 2013.

"We anticipate that consumers who borrowed more than 68,000 payday loans are eligible for refunds," said Manjit Bains, Vice President Corporate Relations, Consumer Protection BC. "Consumers have waited long enough for their money."

Consumer Protection BC will ensure that Cash Store Financial provides all eligible consumers with complete and accurate refunds.  Cash Store Financial is responsible for the implementation of the refund process. The process includes notifications with advertising, addressed mail and other public notices to ensure that all potential refundees are made aware of the refunds available. Anyone who obtained a payday loan from The Cash Store or Instaloans between November 1, 2009 and March 23, 2012 may be eligible for a refund.  Each refund will require a claim form which will be available from Cash Store or Instaloan locations.  Claim forms will also be available at www.paydayloanrightsbc.ca.

Any funds that remain unclaimed, after all efforts to reach eligible consumers are exhausted, will be held by Consumer Protection BC for a further six years, during which time, claims for refunds may be submitted directly to Consumer Protection BC.

Consumer Protection BC will monitor the refund process closely. Updates about refunds and 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 protected].

Additional information is available at www.paydayloanrightsbc.ca including:

• A backgrounder.
• Questions and Answers.
• A visual representation of the refund process highlights, and
• A copy of the Supplemental Compliance Order.

About Consumer Protection BC: Consumer Protection BC is a not-for-profit corporation that was created to strengthen consumer protection in BC and enforce consumer protection laws. Our vision is confident consumers and trusted businesses in a thriving marketplace. 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. Follow Consumer Protection BC on Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips and resources.

SOURCE: Consumer Protection BC