EDMONTON, Feb. 5, 2013 /PRNewswire/ - The Cash Store Financial Services Inc. ("Cash Store Financial") (TSX:CSF) & (NYSE:CSFS) today issued the following statement:
On February 4, 2013, the Registrar for payday loans in Ontario issued a proposal to revoke the payday lending licenses of the Cash Store Inc. and Instaloans Inc. (the "Companies"). Sections 13(2) and 14(1) of the Payday Loans Act provide that licensees are entitled to a hearing before the License Appeal Tribunal in respect of the Registrar's proposal. The Cash Store Inc. and Instaloans Inc. will be requesting a hearing.
Since September 2011, the Consumer Protection Branch of the Ministry of Consumer Affairs has attempted to force the Companies to deliver payday loans in cash, rather than the much safer and efficient electronic methods that they now use. The Companies have indicated that they are unwilling to place employees and customers at risk of physical harm. The Consumer Protection Branch of the Ministry of Consumer Affairs has also attempted to prohibit the Cash Store Inc. and Instaloans Inc. from selling products other than payday loans. The Companies have indicated that they are not prepared to accept these onerous restrictions.
As a result of the Companies' recently announced introduction of its Line of Credit products in Ontario, the Cash Store Inc. and Instaloans Inc. do not offer payday loans in the province, so the Registrar's proposal to revoke the Companies' payday loan licenses is not expected to cause any interruptions to the Companies' current operations. The Registrar's proposal to revoke payday loan licenses is not related to the Companies' Line of Credit offerings.The Cash Store Financial Services Inc. will provide updates on these issues as developments occur. 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.