Director's Bulletin: Payday Loans
The Director under the Ministry of Consumer and Business Services Act filed an Application on Friday, June 7, 2013 to start legal proceedings against a payday loans company. This strong action shows the government's commitment to protecting vulnerable consumers, those suffering financial hardship.
In general, the Application asks the court to declare that:
- the company's basic line of credit product is a payday loan and is subject to Ontario's Payday Loans Act and its regulations
- the company must obtain a payday loan broker licence, under the Payday Loans Act, to act as a loan broker of the basic line of credit
- the company cannot act as a loan broker of the basic line of credit without the required licence.
On February 4, 2013, the Ontario Registrar of Payday Loans issued a proposal to revoke Cash Store's/Instaloans' payday lender licences. In early February 2013, Cash Store stated it was switching from offering payday loans to lines of credit. Cash Store stated that its lines of credit are not governed by the Payday Loans Act.
Application Information at a glance
Ontario Superior Court of Justice
393 University Avenue
Toronto, Ontario, M5G 1E6
The Director designated under the Ministry of Consumer and Business Services Act
Date of Filing:
June 7, 2013
Matter:Notice of Application Pursuant to Section 54(1) of the Payday Loans Act, 2008