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Cash Store Financial supports Ontario's balanced approach to payday regulation
6/10/2008 12:00:00 AM
"Rate-setting should be market-based and ensure that existing operators can compete for market share after rates have been set by law."
EDMONTON, June 10 /CNW/ - Cash Store Financial supports Ontario's balanced approach to regulation of the payday loan industry.
The Cash Store Financial Services Inc. (formerly Rentcash Inc.) is Canada's largest broker of small-sum short-term consumer loans. Headquartered in Edmonton, Alberta, the Company is publicly traded on the TSX.
The Company employs over 1,500 associates in nine provinces and two territories and operates over 380 branches nationwide, including 120 "The CashStore" and "Instaloans" branches in the province of Ontario.
Cash Store Financial has one of the most comprehensive consumer protection frameworks in Canada's payday advance industry and was one of the first major companies to stop providing rollovers on payday loans. The Company fully discloses in plain language all costs associated with a payday advance.
"In Ontario, the debate on new industry rules has been balanced and reasonable. Everyone agrees, including the United Way, that payday loans are a needed product that must be made available to consumers. With strong consumer protection measures now in place, the government must set rate limits that will enable existing operators to remain profitable and able to provide the service," said Gordon J. Reykdal, Chairman and CEO.
He added: "During Committee debate, politicians from both major parties provided clear policy guidance that new rate caps must allow for a viable and competitive industry. We are optimistic that the Government of Ontario will adhere to this policy direction. Rate-setting should be market-based andensure that existing operators can compete for market share after rates havebeen set by law."
Please see attached backgrounder regarding Cash Store Financial's Commitment to Customer Care.
About Cash Store Financial
Cash Store Financial (formally Rentcash Inc.) is the only payday advance broker in Canada publicly traded on the Toronto Stock Exchange (TSX:CSF). Cash Store Financial operates over 380 branches across Canada under the banners:The Cash Store and Instaloans.
The Cash Store and Instaloans act as brokers to facilitate payday advance services to income-earning consumers and provide a private-label debit card -the "Freedom" card and a prepaid credit card - the "Freedom" MasterCard, to those who may not be able to obtain them from traditional banks. Cash Store Financial employs more than 1,500 associates and isheadquartered in Edmonton, Alberta.
Backgrounder
Cash Store Financial's Commitment to Customer Care
Cash Store Financial's Commitment to Customer Care is one of the mostrobust consumer protection programs in Canada's payday advance industry. Thisprogram ensures that all of our customers are treated fairly at all times. Through our Commitment to Customer Care we:
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Disclose all costs, including default and interest charges;
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Protect our Customer's privacy;
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Allow our Customers to rescind a payday loan within 24 hours - for any reason, no questions asked;
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Will not facilitate rollovers on payday loans;
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Advance loans only up to an approved maximum;
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Employ collection practices that are fair and in full compliance with provincial regulations
In addition, our formal complaints procedures are consistent with those elements of the Bank Act that are enforced by the Financial Consumer Agency of Canada.
At any time, our customers can reach our Complaints Officer by e-mail or through our toll-free line. Customers' concerns are fully investigated. The Company's objective is to address concerns in 14 business days or less. The Complaints Officer maintains a file, documents all findings, and is accountable to a Senior Officer of the corporation.
Details regarding our complaints procedures are published in pamphlets that are accessible and prominently displayed in all of our branches.
In every branch, we prominently display pamphlets that:
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Advise consumers about the high cost of a payday loan;
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Provide financial planning and budgeting tips;
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Include contact information regarding non-profit credit counseling services available in the province where the branch is located.
We maintain a 12-person training department, members of which can be quickly deployed into the field when process deficiencies are identified. A recent survey (1) of our customers in Ontario found that 83 percent felt that all aspects of their transaction had been fully explained to them. This same survey found 88 percent of our customers are either satisfied or very satisfied with their experience in dealing with a Cash Store Financial branch.
As a publicly traded Company, Cash Store Financial makes available itsfinancial statements for public review.
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(1) Random telephone survey of 400 recent Cash Store Financial customers in Ontario conducted by Edmonton-based Banister Research, an independent public opinion research company. Results are accurate +4.9%, 19 times out of 20
For further information: Gordon J. Reykdal, Chairman and Chief Executive Officer, (780) 408-5118; or Michael J.L. Thompson, Senior Vice President & Corporate Secretary, (780) 408-5595, Cell: (780) 934-4729