EDMONTON, Oct. 18, 2012 /PRNewswire/ - The Cash Store Financial Services Inc. ("Cash Store Financial") (TSX:CSF; NYSE:CSFS) today announced that it has been served with proposed class proceedings in Ontario, Saskatchewan, Alberta and British Columbia with respect to it and its subsidiaries The Cash Store Ltd. and Instaloans Inc. (collectively, "Cash Store").
In each case, the plaintiffs allege that the payday loans provided by Cash Store failed to meet the applicable laws governing payday lenders in these jurisdictions. The plaintiffs seek, on behalf of themselves and the classes, a refund of amounts paid by consumers that are in excess of the loan principal.
In all cases, Cash Store Financial believes that it conducts its business in accordance with applicable laws in each of the jurisdictions noted and will be defending these actions vigorously both with respect to certification as a class proceeding and on each action's merits. However, the likelihood of loss, if any, is not determinable. Accordingly, no provision has been made in the accounts for these actions.
About Cash Store FinancialCash Store Financial is the only lender and broker of short‐term advances and provider of other financial services in Canada that is listed on the Toronto Stock Exchange (TSX: CSF). Cash Store Financial also trades on the New York Stock Exchange (NYSE: CSFS). Cash Store Financial operates 529 branches across Canada under the banners "Cash Store Financial" and "Instaloans". Cash Store Financial also operates 25 branches in the United Kingdom. Cash Store Financial and Instaloans primarily act as lenders and brokers to facilitate short-term advances and provide other financial services to income-earning consumers who may not be able to obtain them from traditional banks. Cash Store Financial also provides a private-label debit card (the Freedom card) and a prepaid credit card (the Freedom MasterCard) as well as other financial services, including bank accounts.