FP says Ontario wants to revoke Cash Store's licen FP says Ontario wants to revoke Cash Store's licence
Cash Store Financial Services Inc (The) (C:CSF)
Shares Issued 17,571,813
Last Close 2/27/2013 $3.00
Thursday February 28 2013 - In the News
The Financial Post reports in its Thursday edition that payday loan firms are increasingly in the crosshairs of governments obsessed with consumers getting tangled up in loans they cannot repay. The Post's Theresa Tedesco writes governments in Canada, the United States and United Kingdom, bruised by the reckless lending practices of banks and irresponsible borrowing by consumers that sparked the 2008 financial crisis, are cracking down on short-term loan providers for the way they operate and for trying to skirt the rules. The Ontario government has taken aim at the operating licence of Cash Store Financial Services ($3). Cash Store is an Edmonton-based company with 512 branches across Canada and 25 in the U.K. Ontario wants to revoke Cash Store's licence because it alleges that by charging fees, it allows the company to end run the province's maximum borrowing cap of $21 per $100 lent. Cash Store disagrees and has filed for a judicial review. Meantime, the consumer protection branch of Ontario's Ministry of Consumer Affairs issued an "alert" to consumers telling them of the investigation and reminding them of their rights. Cash Store has faced similar challenges in Alberta, Manitoba and British Columbia.
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