The Cash Store Financial Services responded to Ontario Regulation 351/13 that was filed by the Government of Ontario on December 17. Cash Store Financial is reviewing the regulations in detail, but understands that Regulation 351/13, made under the Payday Loans Act, 2008, prescribes certain categories of credit such that the Act will apply to certain line of credit products offered through the company's The Cash Store Inc. and Instaloans Inc. retail banners. The new regulations are scheduled to come into force on February 15, 2014. Cash Store Financial intends to comply with any regulatory requirements and intends to apply for a license under the new regulations. In February 2013, Cash Store Financial introduced its Line of Credit products in Ontario. Consumers were given a chance to improve their financial circumstance by providing a pathway to traditional credit forms and gradual access to lower cost credit products. This was done through a risk-tiered and graduated suite of Line of Credit products that over time, provided lower-cost, more flexible loans that ultimately result in access to credit-scored products. Thousands of Canadians have already advanced up the ladder, meaning they are paying substantially lower fees than allowed under the Payday Loans Act. The company is assessing the impact the new regulations will have on certain of its products.
- Government of Ontario