Payday Lenders Plead Guilty and Fined $150,000 for Operating without a Licence
On November 18, 2013, The Cash Store Inc. and Instaloans Inc -- owned by The Cash Store Financial Services Inc. -- pleaded guilty at the Guelph Provincial Offences Court to operating as payday lenders in Ontario without a licence.
The Cash Store Inc. and Instaloans Inc. were fined a total of $150,000, and are required to pay victim surcharges.
Between February 1, 2012, and July 4, 2012, The Cash Store Inc. and Instaloans Inc. acted as lenders of payday loans to borrowers throughout Ontario (including at their Guelph, Brantford and Sarnia stores), without being licensed as lenders under Ontario's Payday Loans Act, 2008.
Consumers are reminded to check the ministry's Consumer Beware List before doing business with any company.
- More than 750 payday loan storefronts are located in the province.
- Since 2008, inquiries to the Ontario government about payday loans have increased nearly tenfold, from 141 to 1,324.