News Releases

Media Bulletin - Manitoba

October 26, 2012


The Manitoba Consumer Protection Office is notifying consumers that The Cash Store Inc. and Instaloans Inc. have advised they will no longer be issuing payday loans in Manitoba but will offer other credit products to their customers.

The Cash Store and Instaloans, having voluntarily given up all of their payday lending licences in Manitoba, are no longer legally authorized to offer, arrange or provide payday loans anywhere in the province.  The Consumer Protection Office is monitoring these and other new financial products to ensure they comply with Manitoba’s consumer protection legislation. 

Provincial law requires that all payday lenders offering, arranging or providing payday loans to Manitobans be licensed by the Consumer Protection Office and comply with the Manitoba regulatory framework.  These protections only apply if the consumer is obtaining a payday loan. 

A payday loan is a loan of $1,500 or less, borrowed for 62 days or less, where the money is advanced in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar amount.  Payday loans do not include margin loans, pawnbroking, lines of credit, credit cards or any guarantee, suretyship, overdraft protection or security on property. 

Consumers obtaining payday loans should know that:

  • the maximum charge allowed for payday loans in Manitoba, including interest and fees, is $17 per $100 borrowed;
  • a person cannot be charged more than the maximum, but they can be charged less;
  • different payday lenders may charge different rates as long as they respect the maximum; and
  • borrowers cannot be required to buy prepaid cards or insurance in order to obtain a payday loan.

Consumers taking out any loan should ask questions about anything they do not understand and should not sign any documents or agree to any loan conditions that are not clear.  It is particularly important that customers understand the total amount of interest, fees and other charges they will have to pay during the course of the loan. 

Consumers should be aware that a high interest loan must comply with the Criminal Code of Canada, which prohibits lenders from issuing loans where the charges and expenses, including most fees, commissions and penalties, result in an interest rate that is higher than 60 per cent per year, unless the loan is a payday loan provided under a provincial licence and certain strict requirements are met.  

Consumers who have questions about whether financial products offered in Manitoba are payday loans, Manitoba’s payday lending rules, or who are concerned about their payday loans, can contact the Consumer Protection Office at 204-945-3800 or 1-800-782-0067 (toll-free), or by email

- 30 -