CONSUMER PROTECTION OFFICE ACTION LEADS TO REFUNDS FOR MANITOBA PAYDAY BORROWERS– – –
Payday Lender in Violation of Manitoba's Payday Lending Law
Consequently, the office issued a refund demand to the Cash Store and Instaloans to reimburse 61 identified borrowers for unlawful fees charged, required or accepted in relation to payday loans in Manitoba during the period of time that Cash Store and Instaloans held valid payday lender licences in the province. The additional fees were charged in relation to cash cards associated with payday loans.
Residents of Manitoba who obtained a payday loan from Cash Store or Instaloans between Oct. 18, 2010, and Oct. 17, 2012, and were charged an additional fee for an electronic funds transfer or cash card may be eligible for a refund of the loan fee(s). Individuals should contact the Consumer Protection Office by telephone at 204-945-3800 or 1-800-782-0067 (toll-free) in Manitoba or by email at email@example.com.
Manitoba’s payday lending law states the maximum total credit cost of 17 per cent of the principal amount of the payday loan is to include any fees charged in relation to a cash card or other device issued or sold to a borrower to enable him or her to access money under a payday loan including the following fees:
- an activation fee;
- a reactivation fee;
- an inactivity fee;
- service fees charged to access money advanced for the first time following any advance of a payday loan; or
- the first charge for a periodic fee such as a maintenance fee.
The Consumer Protection Office shares information with consumers to help them make informed choices and is committed to protecting consumers as well as holding payday lenders accountable to Manitoba’s payday lending laws.
The Manitoba government is currently taking additional steps to protect Manitoba families through new legislation that would give the Consumer Protection Office greater authority to take action against businesses that break the rules. In addition, the department is currently reviewing high‑interest loan rules, including a review of what is happening in other provinces, to determine what additional measures could be taken to protect Manitoba consumers.
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