November 5, 2015
Consumer Protection Office Issues Administrative Penalty against Payday Lender for Failing to Comply
Manitoba Tourism, Culture, Heritage, Sport and Consumer Protection advises a licensed Manitoba payday loan corporation located in The Pas has been assessed an administrative penalty of $5,000 by Manitoba’s Consumer Protection Office.
On Sept. 16, a notice of administrative penalty was issued to 5117951 Manitoba Ltd. (operating as The Pas Title Loans) for entering into payday loan agreements with borrowers for loan amounts that exceed the allowable proportion of the borrower’s net pay.
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.
Manitoba’s Consumer Protection Act has provisions that protect consumers in a variety of ways including limiting the amount charged for a loan, establishing the length of repayment periods and prohibiting concurrent loans. Disclosure requirements, including the requirement that information relating to payday loans be posted in each payday lending location, ensure that potential consumers are provided with fair, accurate and timely information so they can make an informed decision best suited to their needs.
Under the act, corporations are subject to an administrative penalty of $5,000 for the first contravention, $10,000 for a second and $20,000 for a third or subsequent contravention.
For information on administrative penalties, including information on penalties that have been issued, visit www.manitoba.ca/cca/cpo.
Manitobans are encouraged to learn more about consumer protection issues and their rights under the law. For more information, contact the Consumer Protection Office at 204-945-3800 in Winnipeg, toll-free in Manitoba at 1-800-782-0067, via email at consumers@gov.mb.ca or visit the website at www.gov.mb.ca/cca/cpo.
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