A payday loan company is requesting a hearing before Ontario's License Appeal Tribunal over the province’s attempt to revoke its payday lending licences.
Cash Store Financial Services says the province’s registrar for payday loans issued a proposal this week to revoke the payday lending licenses of its InstaLoans and The Cash Store outlets.
The Ontario Ministry of Consumer Services alleges that the company has broken several provisions of Ontario's Payday Loans Act. However, Cash Store Financial Services says it no longer offers payday loans in the province since introducing a number of line-of-credit products.
The company also alleges the Consumer Protection Branch of the Ministry of Consumer Affairs has attempted to prohibit it from selling products other than payday loans. As well, it says the ministry has attempted to force the company to deliver loans in cash, rather than the electronic methods they currently use. Cash Store says it's unwilling to place employees and customers at risk by handling cash.
The Edmonton-based company said in a statement Tuesday that it’s not prepared to accept “these onerous restrictions.”
Ontario premier-designate Kathleen Wynne declined to comment on the Cash Store situation, but said the legislation the Liberals brought in was designed to protect consumers.
"We brought in that legislation because there were vulnerabilties for people who were using those services and we want to make sure they are protected," Wynne told repprters Wednesday.
Cash Store Financial Services has 200 outlets in Ontario branded as InstaLoans and The Cash Store. It also has outlets in eight other provinces as well as two territories and has 2,400 employees.
