VICTORIA, BC, Jan. 31, 2014 /CNW/ - The Supreme Court of British Columbia has upheld Consumer Protection BC's Compliance Orders against Cash Store Financial Inc. requiring the company to comply with the law and refund over $1 million to consumers.
Consumers who took out an estimated 68,000 payday loans between November 1, 2009 and March 23, 2012 from The Cash Store and Instaloans, both operated by Cash Store Financial Inc., may be eligible to receive refunds for illegal fees charged for cash cards. The refund process was to begin in late 2012 but Cash Store Financial Inc. applied for a judicial review of Consumer Protection BC's orders.
"This ruling from the Supreme Court of BC is very significant for both consumers and the payday lending industry," said Manjit Bains, vice president corporate relations, Consumer Protection BC. "Consumers have waited long enough and it's time for Cash Store to refund their money."
Pending the judicial review process, the Court had ordered Cash Store to secure the refund amount of more than $1 million in the event the orders were upheld. Consumer Protection BC is now expecting Cash Store to begin the refund process as outlined in the supplemental order, effective immediately.
"We want that $1 million to be back in the wallets of those who were overcharged," said Bains. "Consumer Protection BC will work to ensure that all consumers, who are eligible for refunds receive complete and accurate refunds quickly."
A copy of the court's judgment will be available on the Supreme Court of British Columbia website. Cash Store Financial Inc. has the right to file an appeal with the BC Court of Appeal within 30 days of today's decision.
All recent Consumer Protection BC enforcement actions are published on our corporate website. A backgrounder on payday lending BC, a visual summary of the refund process as well as additional information for consumers and businesses can be found on Consumer Protection BC's payday lending website at www.paydayloanrightsbc.ca. Consumers may also contact the Consumer Protection BC Inquiry Centre by calling 1-888-564-9963 (toll free) or by emailing firstname.lastname@example.org. Consumer Protection BC is a not-for-profit corporation whose vision is confident consumers and trusted businesses in a thriving marketplace. We enforce consumer protection laws and strengthen consumer protection in BC by licensing and inspecting specific industries, responding to consumer questions, investigating alleged violations of consumer protection laws and educating consumers and businesses about their rights and responsibilities. For more information about our organization, please visit our corporate website at www.consumerprotectionbc.ca. You can also 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