Justice Served: Cash Money Ordered to Refund Millions to Thousands of BC Customers

A major victory for consumer protection has unfolded in British Columbia as the prominent payday lender, Cash Money, has been ordered to pay back nearly $1.6 million to thousands of its customers. This significant ruling comes after a thorough investigation by Consumer Protection BC unearthed a pattern of illegal fees and deceptive practices.

The regulatory body initiated its probe into Cash Money, specifically the entity operating as 977907 BC Ltd., in 2021.

What they discovered was deeply concerning: the lender had been routinely adding "optional" services, such as roadside assistance and legal protection, to its short-term loan agreements without clearly obtaining customer consent. While these services might seem innocuous on their own, their inclusion effectively pushed the cost of the loans far beyond the legal maximum allowed in B.C.

– which is a strict $15 for every $100 borrowed.

Consumer Protection BC's findings revealed that these additional, often unwanted, charges meant that customers were paying significantly more than the legal cap. This practice not only violated provincial regulations designed to protect vulnerable borrowers but also demonstrated a clear disregard for transparent lending practices.

The investigation highlighted how seemingly minor add-ons could accumulate, leading to substantial financial detriment for individuals seeking quick financial relief.

As a direct result of these findings, Cash Money has been mandated to refund a staggering $1,595,296 to precisely 14,086 customers who were impacted by these illicit charges.

In addition to the substantial refunds, the company has also been hit with a $25,000 administrative penalty, reinforcing the seriousness of its non-compliance. This decisive action serves as a stern warning to other lenders that predatory practices will not be tolerated in the province.

This case underscores the vital role of Consumer Protection BC in safeguarding the financial well-being of British Columbians.

The organization continues to oversee a range of businesses, including payday lenders, ensuring they adhere to provincial laws and operate ethically. "Consumers have a right to clear and transparent information about the services they are purchasing, and we are committed to enforcing those rights," stated a representative from Consumer Protection BC, emphasizing their dedication to maintaining a fair marketplace.

For those who may have utilized Cash Money's services and suspect they were overcharged, Consumer Protection BC encourages them to contact the organization directly.

This ongoing oversight ensures that consumers have an avenue for recourse and that financial service providers are held accountable. The ruling against Cash Money marks a crucial moment for consumer rights, reiterating that even in the often-complex world of short-term lending, transparency and adherence to legal limits are paramount.