Payday lender Cash Money has been ordered to refund $547,000 to over 2,800 consumers in British Columbia after a Consumer Protection BC investigation.
The regulator claims that Cash Money’s loan agreements broke provincial consumer protection laws. They required borrowers to repay before accessing funds from their employers or other sources.
In some cases, borrowers also had less time to repay their loans than the law allows.
Earlier this month, the company sent out refund checks for more than 5,600 payday loans that were found to be non-compliant. These loans were issued between June 1st, 2023, and July 20th of this year.
A payday loan in BC is defined as a short-term loan of up to $1,500.
The province caps the cost at a maximum of $14 per $100 borrowed, including all fees and interest. Despite the cap, Consumer Protection BC warns that payday loans remain one of the most expensive ways to borrow money and can trap people in debt.
“We often see under-resourced consumers using these loans because they don’t require a credit check,” said Rob Hartland of Consumer Protection BC.
“Unfortunately, a lot of people get caught up in a dangerous borrowing cycle and find themselves going deeper and deeper into debt.”
The regulator says 122,901 people in BC took out payday loans in 2024, borrowing approximately $364 million—an 11 per cent increase from the previous year.
Consumers who believe they may be eligible for a refund can contact Cash Money directly at 1-877-526-6639 or customerservice@cashmoney.ca
. Consumer Protection BC is also inspecting other payday lenders for similar violations.
