It can sometimes get messy in the payday loan industry.
For example, rewind to March 2010 when the Ontario Superior Court of Justice approved a settlement for members of a class action suit against Money Mart. Some had their outstanding debt forgiven, others had transaction credits allocated and others were given cash or cash credits. The cash repayment alone was settled at $27.5 million.
Now, another heavy-hitter in the payday loan industry is making news again.
Citizens of Manitoba who borrowed from Cash Store Financial Services Inc. or Instaloans between October 18th, 2010 and October 17, 2012 may be eligible for a refund. In Manitoba, the maximum allowable fee for every $100 borrowed is $17, which must include all related fees. However, upon investigation, the consumer protection office found that additional fees for electronic transfers or cash cards were being added.
Some are asking the question “how does this happen?”, while others ponder if it was intentional or accidental. While it’s not up to us to determine that, it is up to us to continue to educate you, our customer, on your rights and responsibilities before taking out a payday loan, whether it’s with us, or one of our competitors.
Since our inception, we have been passionate about customer education and we strive to be completely transparent about our lending policies and costs. With GoDay.ca, our fees are $21 per $100 borrowed as per the Ontario Payday Loan Act. It’s that simple.
Our message, though short, is simple and hopefully crystal clear. No matter what kind of loan you’re getting, know your terms, know the fees & if something does not add up to you, then speak up! There are laws in place to protect you and you should be completely aware of those laws before putting your signature, electronic or otherwise, on anything.
We are happy to hear that our industry colleagues at Cash Store are repaying their customers and setting the bar high on quality service.
Were you a Cash Store/Instaloan customer? The Government of Manitoba has directed consumers with inquiries to call the consumer protection office at 1-800-782-0067.
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Interpreting the Ontario Payday Loans Act
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