Consumer Protection BC has issued a compliance order and an administrative monetary penalty against Cashmart Payday Loans Inc. (DBA CashMart), a licensed payday lender based in Surrey BC, for:
- Charging fees exceeding limits prescribed by regulation for cashing government assistance cheques, contrary to section 112.13 of the Business Practices and Consumer Protection Act (BPCPA), an administrative penalty of $4,500
- Failing to ensure that installment payments in payday loan agreements aligned with borrowers’ pay periods, contrary to section 23 (2)(b) of the Payday Loans Regulation
The business has also been ordered to repay all money received from customers for cashing government assistance cheques in the cases of overcharging, to reimburse all payday lending fees to the borrowers (related to section 23), and to reimburse Consumer Protection BC partial costs for the inspection in the amount of $1,500 within 30 days.
By law, the business has 30 days to request a reconsideration of the decision.
All money received from administrative penalties is deposited into the Consumer Advancement Fund (as required by section 169 of the BPCPA).
To check the status of a Consumer Protection BC licensed business, read a backgrounder on the regulation of the sector in BC, understand our administrative penalty policy and procedures and read other information for regulated businesses and the public, please visit our website.
About Consumer Protection BC:
Consumer Protection BC is the regulator of a variety of sectors and specific consumer transactions in the province. Our mandate is to license and inspect our regulated businesses, respond to consumer inquiries, investigate alleged violations of consumer protection laws, classify all general release motion pictures and provide information and referrals to consumers.
For more information about our organization, to read our recent enforcement actions, and to learn about our inspection and complaint-handling processes, please visit our corporate website at www.consumerprotectionbc.ca. You can also follow us on Twitter @ConsumerProBC, like us on Facebook and read our blog for valuable consumer tips and resources.