The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor Flin Flonners can no longer obtain a payday loan after both The Cash Store and Instaloans forfeited their lending licenses. But the businesses, both located on Main Street, will continue to offer other credit products to customers. The Manitoba Consumer Protection Office (MCPO) announced the change in a news release. It applies to all Cash Store and Instaloans locations across the province. 'The Cash Store and Instaloans, having voluntarily given up all of their payday lending licences in Manitoba, are no longer legally authorized to offer, arrange or provide payday loans anywhere in the province,' read the release, issued last Friday, Oct. 26. 'The Consumer Protection Office is monitoring these and other new financial products to ensure they comply with Manitoba's consumer protection legislation.' Provincial law mandates that all payday lenders offering, arranging or providing payday loans to Manitobans be licensed by MCPO and comply with the Manitoba regulatory framework. These protections only apply if the consumer is obtaining a payday loan. A payday loan is defined as a loan of $1,500 or less, borrowed for 62 days or less, where the money is advanced in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar amount. Payday loans do not include margin loans, pawnbroking, lines of credit, credit cards or any guarantee, suretyship, overdraft protection or security on property. MCPO says consumers obtaining payday loans should know that: _ the maximum charge allowed for payday loans in Manitoba, including interest and fees, is $17 per $100 borrowed; _Êa person cannot be charged more than the maximum, but they can be charged less; _Êdifferent payday lenders may charge different rates as long as they respect the maximum; and _ borrowers cannot be required to buy prepaid cards or insurance in order to obtain a payday loan. MCPO urges those taking out any loan to ask questions about anything they do not understand and not to sign any documents or agree to any loan conditions that are not clear. 'It is particularly important that customers understand the total amount of interest, fees and other charges they will have to pay during the course of the loan,' adds the agency. Consumers who have questions about whether financial products offered in Manitoba are payday loans, Manitoba's payday lending rules, or who are concerned about their payday loans, can contact MCPO at 1-800-782-0067.
