Cash Store to request hearing over payday lending licence
The Cash Store is seen in Cambridge, Ont. in Jan. 2012.
EDMONTON - The Cash Store Financial Services Inc. says it will request a hearing before Ontario's Licence Appeal Tribunal over its payday lending licences.
The Edmonton-based company says Ontario's registrar for payday loans has issued a proposal to revoke the payday lending licences of its Cash Store Inc. and Instaloans Inc. businesses.
However, Cash Store Financial Services said it no longer offers payday loans in the province since introducing its line of credit products.
The ministry is scheduled to hold a press conference today, where it's expected to outline its case against the company.
Cash Store Financial Services said since September 2011, the Consumer Protection Branch of Ontario's Ministry of Consumer Affairs has attempted to force its companies to deliver payday loans in cash, rather than the electronic methods they now use.
The company said it's unwilling to place employees and customers at risk by handling cash.
Cash Store Financial Services said Consumer Affairs' consumer protection branch has also attempted to stop the Cash Store Inc. and Instaloans Inc. from selling products other than payday loans.
"The companies have indicated that they are not prepared to accept these onerous restrictions," Cash Store Financial Services said in a news release.
Cash Store Financial says it's the only lender and broker of short-term advances and provider of other financial services in Canada that is listed on the Toronto Stock Exchange.