“Cash stores” charge the poor 23% on loans

The Cash Store and Instaloans have been ordered to pay back “several millions” of dollars in fees for charging customers in British Columbia for cash cards when they took out loans. Laws in B.C. in force since Nov. 1, 2009 limit the amount lenders can charge for payday loans – loans for a maximum of $1,500 that must be paid back within 62 days – to 23 per cent. But The Cash Store and Instaloans, which are both owned by Alberta-based Cash Store Financial Inc., were charging customers between $7 and $21 to put the money borrowed on a cash card, said Manjit Bains, vice-president of corporate relations with Consumer Protection BC, which issued the compliance order. “The law that was introduced [in 2009] says you can’t charge for cash cards and they were charging for cash cards,” Bains said.