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No payday loan licences for Cash Store and Instaloans: Ontario Government

Thursday, February 13, 2014   by: Staff



Cash Store and Instaloans denied Payday Lender Licences

Ontario's Registrar of Payday Loans today issued a proposal to refuse recent applications for payday lender licences from Cash Store and Instaloans - both owned by The Cash Store Financial Services Inc.

Separately, on February 12, the Superior Court of Justice issued a decision that the basic line of credit Cash Store and Instaloans has been offering is a payday loan and subject to Ontario’s Payday Loans Act and Regulations.

Cash Store and Instaloans are prohibited from acting as a loan broker of the basic line of credit without a licence and they have been ordered to pay $50,000 in costs to the Ontario Ministry of Consumer Services.

The Court’s decision resulted from an application filed on June 7, 2013 by the Ministry.

As a result of the decisions by the Registrar and Superior Court of Justice, Cash Store and Instaloans cannot offer payday loans or their basic line of credit product in Ontario.

In February 2013, the Ontario Registrar of Payday Loans issued proposals to revoke Cash Store’s and Instaloans’ licences.

In the same month, Cash Store and Instaloans indicated they would no longer offer payday loans in Ontario, but would offer lines of credit instead.

In July 2013, the companies did not renew their payday lender licences.

Under the Payday Loans Act, the Registrar may propose to refuse a licence if the applicant’s past conduct “affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty.”

Past conduct the Registrar alleges includes:

  • The November 2013 convictions of Cash Store and Instaloans operating as unlicensed payday lenders
  • Charging more than the Ontario maximum of $21 per $100 borrowed for a payday loan
  • Not providing consumers with their payday loans immediately

Both Cash Store and Instaloans have the right to request a hearing before the Licence Appeal Tribunal to dispute the proposal.

Quick facts

  • More than 750 payday loan storefronts are located in the province.
  • Under the Payday Loans Act, a payday lender must provide a consumer with their loan immediately upon entering into the payday contract.


Note: Comments that appear on the site are not the opinion of If you see an abusive post, please click the link beside the post to report it.
Zing 2/13/2014 7:38:43 PM Report

Beej 2/13/2014 7:46:00 PM Report

Employees should be sporting masks and guns at these stores.
After all, it is legal robbery!
soowat 2/13/2014 8:01:25 PM Report

Phooey! Now my relatives will be back to bumming money from me
Lone24 2/13/2014 8:18:26 PM Report

Good, people have a hard enough time now with money. Don't need people like them feeding off the more unfortunate so they can become rich.
sAUCEY 2/13/2014 8:22:43 PM Report

No one forces anyone to borrow from these places, so if some get into trouble with money its not the companies fault.. its like blaming the fork for making you fat... plus they're like 15 places in town that do this
hahahaha 2/13/2014 8:27:12 PM Report

Good... thats what Cash Store and Instaloans get for trying to take money away from the Ontario Government. After all, if you cant afford to pay your mortgage the bank gets to take your house. Why not eliminate as many options as possible. Hopefully the people do go to their family and friends and not the alternative illegal options out there.
Lone24 2/13/2014 8:27:41 PM Report

Didn't say it was the companies fault.
sooboy 2/13/2014 8:29:22 PM Report

The Ontario Gov doesn't have clean hands themselves with all the casinos which can be considered legalized theft.
bbcat 2/13/2014 8:43:29 PM Report

you are right sooboy that casino has ruined many lives, mine for one
TFinn 2/13/2014 9:13:30 PM Report

There are 800 numbers everywhere to call for help with gambling problems ...people do have choices.. !
TFinn 2/13/2014 9:15:09 PM Report

BTW ..I think all these cash advance places are rip offs ....feeding on the down and outs.
northernmale 2/13/2014 9:35:23 PM Report

I no someone who took out a loan to pay off there debit at a finance company . . They told me they had to pay 32 percent I almost fell over/. Now that is stealing. And I no several people who have lost the life saving's at the casinos.As well as cost them there marriages.And none of these people gambled till these place where built here.
scottstewy123 2/13/2014 10:37:02 PM Report

its KNOW not no..........just saying
groundspeed 2/13/2014 10:55:47 PM Report

While we're on the subject, it's "their debts", not "there debits", "savings", not "saving's", "were built", not "where built" not to mention the grammatical and punctuation errors. It's no wonder people have money problems, they won't go to school.
Bad Dawg 2/14/2014 12:08:01 AM Report

its not the casinos fault.... they know they can't afford it and still go in or they know their wife will be mad and still go in. it was your choice and obliviously you didn't make the right one.

so because they didn't have a license are all those contracts for lines of credit null and void??
cliff76 2/14/2014 12:14:28 AM Report

Can someone please tell me how these companies are different then banking institutions or companies like "city financial" other then the interest rates? Like many have said, individuals are not forced into borrowing from such places. Not everyone is/has good/great/excellent choices there for not able to borrow from places with lower interest rates. I'm guilty of making bad choices in life which I'm not proud of but have used such places with higher interest rates to scrape by till my next pay day. Even knowing how dangerous they are. I'm sure I could ask a friend or loved one but I myself is not the type to ask. Even though those people would give it but I also know that it would leave them short. I made my bed and more times then not I have to sleep in it. Either way someone is gonna have something to say but I know that when I get into bed I'll be able to sleep and not worry about whether or not I'll have to go to the grocery store and Steal my next meal or beg for government assistance essentionally from tax payers. Single Dad just trying to Raise my kids.
Tag33&1/3rd 2/14/2014 12:56:46 AM Report

Right on Cliff!
justsomeguy 2/14/2014 9:05:23 AM Report

@cliff - banks have more reasonable interest rates and payback terms. They also are often a little more up front with fees & the fine print.

Payday loans prey on those of us who are just scraping by and make things look very attractive & easy. Often their interest rates are 30-35% which is many, many, many times higher than any bank.

Banks are also more inclined to negotiate points whereas payday loan stores can be vicious. You're right in that it's increasingly difficult to not live paycheque to paycheque & scrape by.

That being said, the Liberals are again trying to make it look like they are taking action, but I ask where were they when they originally allowed these stores? Where was their due diligence then? All the liberals are doing is attempting to create the mess that they allowed. If they had some foresight originally, because I know many people were critical of these loan stores, the liberals could have made these stores a little friendlier to the consumer and not tantamount to loan sharking.
ThinkAgain 2/14/2014 10:03:56 AM Report

Credit Card Companies are just as bad 20.00% (but they sleep with politicians)
crashed13 2/14/2014 10:44:09 AM Report

Last I heard they do not point a gun at you and demand that you enter their business ,just like Casinos and bars.

You need laws to manage other peoples money?
AndyCap 2/14/2014 11:21:06 AM Report

Back in the day Id hit up one of these places and they give me enough cash for some smokes, beer and snacks. Id pay them back on payday. Everything was cool.
Note: Comments that appear on the site are not the opinion of If you see an abusive post, please click the link beside the post to report it.
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