Greater Trail residents who were overcharged for payday loans from The Cash Store are eligible for refunds estimated to total approximately $1 million.
In March, 2012, Consumer Protection B.C. ordered the parent company, Cash Store Financial Inc., to stop charging illegal fees and repay customers who were overcharged.
As a result of a Supplemental Compliance Order issued on Nov. 30, the refund process was scheduled to begin for Greater Trail residents on Tuesday. The ruling applies to anyone who used the Cash Store in Trail or Instaloan in Castlegar and Nelson.
Consumer Protection BC will ensure that Cash Store Financial provides all eligible consumers with complete and accurate refunds, said Manjit Bains, Consumer Protection BC's corporate relations vice president.
“Cash Store Financial is responsible for the implementation of the refund process,” said Bains.
The process includes notifications with advertising, addressed mail and other public notices to ensure that all people who are to receive a refund are made aware of the refunds available.
Anyone who obtained a payday loan from The Cash Store or Instaloans between Nov. 1, 2009 and March 23, 2012 may be eligible for a refund. Each refund will require a claim form which will be available from Cash Store or Instaloan locations.
Claim forms will also be available at www.paydayloanrightsbc.ca.
Any funds that remain unclaimed, after all efforts to reach eligible consumers are exhausted, will be held by Consumer Protection BC for a further six years, during which time, claims for refunds may be submitted directly to Consumer Protection BC.
Bains said Consumer Protection BC will monitor the refund process closely. Updates about refunds and payday lending can be found at www.paydayloanrightsbc.ca.
Consumer Protection BC is a not-for-profit corporation that was created to strengthen consumer protection in BC and enforce consumer protection laws.