The Cash Store provides Ontario regulatory update
EDMONTON - The Ontario Ministry of Consumer Services has filed an application to start legal proceedings against The Cash Store Financial in relation to the Company's Basic line of credit product offering that was introduced on February 1, 2013.
In February 2013, The Cash Store ceased offering payday loans in Ontario and began brokering the basic line of credit as part of a wider initiative to offer a risk-based suite of line of credit products allowing customers to build credit and gain access to less costly funding.
The Cash Store an application pending for judicial review, seeking a declaration that certain provisions of the regulations made under the Ontario Payday Loans Act are void and unenforceable, which application is scheduled to be heard on October 2, 2013. The new application by Ontario seeks a declaration that the basic line of credit is subject to the Payday Loans Act and that The Cash Store must obtain a broker license to offer this product, irrespective of the validity of the regulations.