This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cash Store Financial Introduces Its Expanded Line Of Credit Products To Ontario Consumers

EDMONTON, Feb. 1, 2013 /PRNewswire/ - The Cash Store Financial Services Inc. ("Cash Store Financial") (TSX:CSF) (NYSE:CSFS) today announced that it has launched a new suite of line of credit products in Ontario. These line of credit products are designed to better serve the under-banked consumers through flexible medium term credit products and help build a credit history and move toward lower cost mainstream credit.

"This suite of unsecured line of credit products enables consumers to move up the credit ladder toward credit-scored products that will eventually enable access to mainstream lending products. With each step up the ladder consumers get better rates and more flexible repayment terms," said Gordon J. Reykdal, Chairman and CEO.

"Over the past 10 years Cash Store Financial has leveraged the popularity of payday loan products to build a network of 178 branches in the province of Ontario.  We have distinguished ourselves from our competitors by building a branch environment, much like a bank, that enables consumers to conduct their affairs in a private and respectful manner.  Customers appreciate this approach and they have demanded better products and access to more bank-like services.  Expanding our focus to emphasize a more mainstream approach has been a long-term priority for the Company. The potential to more effectively leverage our branch network is significant."

Mr. Reykdal added: "Our ultimate goal is to lengthen the relationship with the customer and to reduce their future borrowing costs with a more traditional source of funding. We believe this product offering is a great first step toward this goal."

Cash Store Financial's line of credit products have been tested nationally for over a year.  The full suite of products was introduced in Manitoba in the fall of 2012, where the Company no longer offers payday loans. Consumer acceptance of the product offerings has been strong. The Company intends to establish lines of credit products in Ontario as its primary product offering. Payday loans are no longer being offered but the Company intends to maintain a payday loan license in the Province of Ontario, at least until such time that the success of the new product offering has materialized as the Company anticipates. The lines of credit are traditional, revolving loans, with regular minimum payments tailored to customers' needs and profiles. Management has determined that the restrictive nature of Ontario's payday loan regulatory scheme prevents it from meeting consumer demands. These new product offerings fall under relevant Federal laws. This provides the Company with the requisite flexibility to effectively serve a broader customer base with better products, at rates that are appropriate to the credit risk associated with each line of credit advanced.

About Cash Store Financial

Cash 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 512 branches across Canada under the banners "Cash Store Financial", "Instaloans" and "The Title Store". 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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs