Manitoba Tourism, Culture, Heritage, Sport and Consumer Protection advises a licensed Manitoba payday loan corporation with locations in Brandon, Steinbach and Dauphin has been assessed five separate administrative penalties totaling $25,000 by Manitoba’s Consumer Protection Office.
On May 6, five Notices of Administrative Penalties were issued to 3928366 MB Ltd. (operating as The Fast Cash Company, City Cash Co., and Fast Cash Dauphin) for failing to maintain complete and accurate collections records in respect to individual payday loans, failing to include the prescribed statement in advertising related to payday loans, and accepting a cheque from a borrower that is not payable to the payday lender, as required by the regulations.
Provincial law requires that all payday lenders offering, arranging or providing payday loans to Manitobans be licensed by the Consumer Protection Office and comply with the Manitoba regulatory framework.
Provisions in Manitoba’s Consumer Protection Act protect consumers in a variety of ways including limiting the amount charged for a loan, establishing the length of repayment periods and ensuring consumers are provided with loan documents so they are aware of their rights prior to entering into a payday loan. Disclosure requirements for advertising are also in place to ensure that potential consumers are provided with fair, accurate and timely information so they can make an informed decision.
Under the act, corporations are subject to an administrative penalty of $5,000 for the first contravention, $10,000 for a second and $20,000 for a third and subsequent contravention.
