Manitoba payday loan company fined $25K for violating lending rules
Fast Cash Company, City Cash slapped on wrist for failing to follow consumer protection guidelines
A payday loan company with locations across Manitoba has been slapped on the wrist and forced to pay thousands of dollars in fines for failing to follow a list of provincial lending rules.
Manitoba Tourism, Culture, Heritage, Sport and Consumer Protection issued $25,000 in fines to the corporation that runs The Fast Cash Company and City Cash Co. locations in Steinbach and Brandon, and Fast Cash in Dauphin.
The province said the businesses didn't keep complete collections records regarding individual loans and didn't include a required statement in its advertising meant to protect borrowers. It also accepted cheques from borrowers that weren't made out to the company
Manitoba's Consumer Protection Act requires lenders to clearly communicate things like the repayment period length of a loan and other consumer guidelines before engaging in transactions with borrowers. Failure to do this can net a company between $5,000 and $20,000 in fines.