Payday lender no longer offering brokered lines of credit in Manitoba
Parent company of The Cash Store and Instaloans was found to have violated provincial rules
A payday loan company operating in Manitoba is no longer offering brokered lines of credit to customers, following several complaints and a provincial government investigation.
Cash Store Financial Services Inc., which owns The Cash Store and Instaloans, violated provincial laws, including its payday loan legislation and loan disclosure requirements, the Manitoba Consumer Protection Office announced Thursday.
The Cash Store started offering brokered lines of credit, in which the stores acted as a "middle man" between third-party lenders and customers, when it stopped offering payday loans in the province, according to government officials.
Last year the CBC News I-Team revealed that some payday loan companies had started offering lines of credit, and some customers found themselves having to pay fees and with high interest rates.
Months after the investigation aired, the province ordered Cash Store Financial Services to pay back additional fees for cash cards and electronic fund transfers that it had charged to dozens of Manitobans.