Salmon Arm residents who were overcharged for payday loans from The Cash Store or Instaloans, which has a branch in Salmon Arm, are eligible for refunds estimated to total approximately $1 million.
In March, 2012, Consumer Protection BC ordered the parent company, Cash Store Financial Inc., to stop charging illegal fees and repay customers who were overcharged.
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.
The refund process is scheduled to begin on Dec. 11. It will be overseen by an independent auditor and Consumer Protection BC. Following from this process, it’s expected that all illegally-charged funds could begin to be refunded as soon as February 2013.
“We anticipate that consumers who borrowed more than 68,000 in payday loans are eligible for refunds,” said Manjit Bains, vice- president corporate relations, Consumer Protection BC. “Consumers have waited long enough for their money.”
Consumer Protection BC will ensure that Cash Store Financial provides all eligible consumers with complete and accurate refunds. Cash Store Financial is responsible for the implementation of the refund process.
The process includes notifications with advertising, addressed mail and other public notices to ensure that all potential refundees are made aware of the refunds available.
Updates about refunds and payday lending can be found at www.paydayloanrightsbc.ca.
Consumers with questions about payday lending in B.C. may contact Consumer Protection BC toll free at 1-888-564-9963 or info@consumerprotectionbc.ca.